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Is UGI Corporation (NYSE:UGI) Overpaying Its CEO?

Simply Wall St

John Walsh became the CEO of UGI Corporation (NYSE:UGI) in 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.

See our latest analysis for UGI

How Does John Walsh's Compensation Compare With Similar Sized Companies?

Our data indicates that UGI Corporation is worth US$9.2b, and total annual CEO compensation is US$7.4m. (This is based on the year to September 2018). While we always look at total compensation first, we note that the salary component is less, at US$1.2m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$6.7m.

That means John Walsh receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at UGI has changed from year to year.

NYSE:UGI CEO Compensation, April 23rd 2019

Is UGI Corporation Growing?

Over the last three years UGI Corporation has grown its earnings per share (EPS) by an average of 19% per year (using a line of best fit). Its revenue is up 18% over last year.

This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has UGI Corporation Been A Good Investment?

Boasting a total shareholder return of 40% over three years, UGI 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.

In Summary...

Remuneration for John Walsh is close enough to the median pay for a CEO of a similar sized company .

The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if UGI insiders are buying or selling shares.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.