Anders Gustafsson has been the CEO of Zebra Technologies Corporation (NASDAQ:ZBRA) since 2007. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Anders Gustafsson's Compensation Compare With Similar Sized Companies?
Our data indicates that Zebra Technologies Corporation is worth US$13b, and total annual CEO compensation was reported as US$10m for the year to December 2019. That's a fairly small increase of 6.9% on year before. While we always look at total compensation first, we note that the salary component is less, at US$1.1m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$12m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Zebra Technologies. Speaking on an industry level, we can see that nearly 36% of total compensation represents salary, while the remainder of 64% is other remuneration. Readers will want to know that Zebra Technologies pays a modest slice of remuneration through salary, as compared to the wider sector.
So Anders Gustafsson is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. You can see, below, how CEO compensation at Zebra Technologies has changed over time.
Is Zebra Technologies Corporation Growing?
Zebra Technologies Corporation has seen earnings per share (EPS) move positively by an average of 84% a year, over the last three years (using a line of best fit). Its revenue is up 3.8% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.
Has Zebra Technologies Corporation Been A Good Investment?
Most shareholders would probably be pleased with Zebra Technologies Corporation for providing a total return of 130% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Anders Gustafsson is paid around the same as most CEOs of large companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Moving away from CEO compensation for the moment, we've identified 2 warning signs for Zebra Technologies that you should be aware of before investing.
Important note: Zebra Technologies may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.