How Is Ultralife's (NASDAQ:ULBI) CEO Compensated?
Mike Popielec became the CEO of Ultralife Corporation (NASDAQ:ULBI) in 2010, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Ultralife pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for Ultralife
Comparing Ultralife Corporation's CEO Compensation With the industry
According to our data, Ultralife Corporation has a market capitalization of US$107m, and paid its CEO total annual compensation worth US$811k over the year to December 2019. We note that's a decrease of 15% compared to last year. Notably, the salary which is US$526.6k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$486k. Hence, we can conclude that Mike Popielec is remunerated higher than the industry median. Furthermore, Mike Popielec directly owns US$1.8m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$527k | US$513k | 65% |
Other | US$284k | US$443k | 35% |
Total Compensation | US$811k | US$956k | 100% |
On an industry level, around 29% of total compensation represents salary and 71% is other remuneration. Ultralife pays out 65% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Ultralife Corporation's Growth Numbers
Over the last three years, Ultralife Corporation has shrunk its earnings per share by 2.7% per year. Its revenue is up 26% over the last year.
Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Ultralife Corporation Been A Good Investment?
Given the total shareholder loss of 3.6% over three years, many shareholders in Ultralife Corporation are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
As previously discussed, Mike is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Meanwhile, the company has been unable to show any EPS growth, and shareholder returns are also in the red. In contrast, revenue growth for the company has been showing a positive trend. Few would argue that it's wise for the company to pay any more, before returns improve.
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 Ultralife that you should be aware of before investing.
Switching gears from Ultralife, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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.
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