In 2015 Peter Altabef was appointed CEO of Unisys Corporation (NYSE:UIS). 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 process should give us an idea about how appropriately the CEO is paid.
How Does Peter Altabef’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Unisys Corporation has a market cap of US$679m, and is paying total annual CEO compensation of US$7.5m. (This figure is for the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$991k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.2m.
As you can see, Peter Altabef is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Unisys Corporation is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Unisys has changed from year to year.
Is Unisys Corporation Growing?
On average over the last three years, Unisys Corporation has grown earnings per share (EPS) by 80% each year (using a line of best fit). Its revenue is up 3.0% over last year.
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. You might want to check this free visual report on analyst forecasts for future earnings.
Has Unisys Corporation Been A Good Investment?
Most shareholders would probably be pleased with Unisys Corporation for providing a total return of 69% 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.
We compared total CEO remuneration at Unisys Corporation with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Unisys.
If you want to buy a stock that is better than Unisys, this free list of high return, low debt companies is a great place to look.
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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.