Mike Popielec has been the CEO of Ultralife Corporation (NASDAQ:ULBI) since 2010. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Mike Popielec's Compensation Compare With Similar Sized Companies?
Our data indicates that Ultralife Corporation is worth US$134m, and total annual CEO compensation is US$956k. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$513k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$496k.
Thus we can conclude that Mike Popielec receives more in total compensation than the median of a group of companies in the same market, and of similar size to Ultralife Corporation. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Ultralife, below.
Is Ultralife Corporation Growing?
Ultralife Corporation has increased its earnings per share (EPS) by an average of 74% a year, over the last three years (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Ultralife Corporation Been A Good Investment?
Boasting a total shareholder return of 97% over three years, Ultralife Corporation has done well by shareholders. 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.
We examined the amount Ultralife Corporation pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Ultralife (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.