Gary Norcross became the CEO of Fidelity National Information Services, Inc. (NYSE:FIS) in 2015. First, this article will compare CEO compensation with compensation at other large companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Gary Norcross's Compensation Compare With Similar Sized Companies?
Our data indicates that Fidelity National Information Services, Inc. is worth US$80b, and total annual CEO compensation is US$18m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.2m. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
Thus we can conclude that Gary Norcross receives more in total compensation than the median of a group of large companies in the same market as Fidelity National Information Services, Inc.. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Fidelity National Information Services, below.
Is Fidelity National Information Services, Inc. Growing?
On average over the last three years, Fidelity National Information Services, Inc. has grown earnings per share (EPS) by 30% each year (using a line of best fit). Its revenue is down -2.0% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.
Has Fidelity National Information Services, Inc. Been A Good Investment?
I think that the total shareholder return of 71%, over three years, would leave most Fidelity National Information Services, Inc. shareholders smiling. 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.
We compared total CEO remuneration at Fidelity National Information Services, Inc. with the amount paid at other large companies. As discussed above, we discovered that the company pays more than the median of that 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. So, considering this good performance, the CEO compensation may be quite appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling Fidelity National Information Services shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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