Anand Vadapalli has been the CEO of Alaska Communications Systems Group, Inc. (NASDAQ:ALSK) since 2011. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
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How Does Anand Vadapalli’s Compensation Compare With Similar Sized Companies?
According to our data, Alaska Communications Systems Group, Inc. has a market capitalization of US$86m, and pays its CEO total annual compensation worth US$1.4m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$450k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$303k.
As you can see, Anand Vadapalli is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Alaska Communications Systems Group, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Alaska Communications Systems Group has changed from year to year.
Is Alaska Communications Systems Group, Inc. Growing?
Alaska Communications Systems Group, Inc. has reduced its earnings per share by an average of 59% a year, over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.
Unfortunately, earnings per share have trended lower over the last three years. And the flat revenue is seriously uninspiring. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Alaska Communications Systems Group, Inc. Been A Good Investment?
Given the total loss of 2.3% over three years, many shareholders in Alaska Communications Systems Group, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
We examined the amount Alaska Communications Systems Group, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Over the same period, investors would have come away with nothing in the way of share price gains. Some might well form the view that the CEO is paid too generously! Shareholders may want to check for free if Alaska Communications Systems Group insiders are buying or selling shares.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.