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What Can We Learn About Unisys' (NYSE:UIS) CEO Compensation?

·4 min read

This article will reflect on the compensation paid to Peter Altabef who has served as CEO of Unisys Corporation (NYSE:UIS) since 2015. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Unisys.

Check out our latest analysis for Unisys

How Does Total Compensation For Peter Altabef Compare With Other Companies In The Industry?

According to our data, Unisys Corporation has a market capitalization of US$759m, and paid its CEO total annual compensation worth US$7.7m over the year to December 2019. That's a notable increase of 9.9% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$991k.

For comparison, other companies in the same industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$4.3m. Hence, we can conclude that Peter Altabef is remunerated higher than the industry median. Moreover, Peter Altabef also holds US$7.0m worth of Unisys stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2019

2018

Proportion (2019)

Salary

US$991k

US$991k

13%

Other

US$6.8m

US$6.1m

87%

Total Compensation

US$7.7m

US$7.0m

100%

On an industry level, around 14% of total compensation represents salary and 86% is other remuneration. It's interesting to note that Unisys allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

A Look at Unisys Corporation's Growth Numbers

Unisys Corporation's earnings per share (EPS) grew 17% per year over the last three years. Its revenue is up 8.0% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Unisys Corporation Been A Good Investment?

Boasting a total shareholder return of 45% over three years, Unisys Corporation has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

As previously discussed, Peter is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, Unisys has produced strong EPS growth and shareholder returns over the last three years. So, in acknowledgment of the overall excellent performance, we believe CEO compensation is appropriate. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Peter's performance creates value for the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Unisys that you should be aware of before investing.

Important note: Unisys is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.