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Is Univest Financial Corporation's (NASDAQ:UVSP) CEO Overpaid Relative To Its Peers?

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Simply Wall St
·4 min read
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In 2014, Jeff Schweitzer was appointed CEO of Univest Financial Corporation (NASDAQ:UVSP). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Univest Financial

How Does Jeff Schweitzer's Compensation Compare With Similar Sized Companies?

Our data indicates that Univest Financial Corporation is worth US$420m, and total annual CEO compensation was reported as US$1.3m for the year to December 2019. Notably, that's an increase of 11% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$635k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$2.3m.

Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Univest Financial. On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. So it seems like there isn't a significant difference between Univest Financial and the broader market, in terms of salary allocation in the overall compensation package.

Most shareholders would consider it a positive that Jeff Schweitzer takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance. You can see a visual representation of the CEO compensation at Univest Financial, below.

NasdaqGS:UVSP CEO Compensation May 18th 2020
NasdaqGS:UVSP CEO Compensation May 18th 2020

Is Univest Financial Corporation Growing?

Over the last three years Univest Financial Corporation has seen earnings per share (EPS) move in a positive direction by an average of 21% per year (using a line of best fit). It achieved revenue growth of 4.4% over the last year.

This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.

Has Univest Financial Corporation Been A Good Investment?

With a three year total loss of 45%, Univest Financial Corporation would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

It looks like Univest Financial Corporation pays its CEO less than similar sized companies.

Many would consider this to indicate that the pay is modest since the business is growing. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. We're not critical of the remuneration Jeff Schweitzer receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. Shifting gears from CEO pay for a second, we've spotted 2 warning signs for Univest Financial you should be aware of, and 1 of them doesn't sit too well with us.

Important note: Univest Financial may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email 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. 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. Thank you for reading.