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William Shepro became the CEO of Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) in 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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.
How Does William Shepro's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Altisource Portfolio Solutions S.A. has a market cap of US$312m, and is paying total annual CEO compensation of US$6.1m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$808k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.8m.
It would therefore appear that Altisource Portfolio Solutions S.A. pays William Shepro more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Altisource Portfolio Solutions has changed over time.
Is Altisource Portfolio Solutions S.A. Growing?
Over the last three years Altisource Portfolio Solutions S.A. has grown its earnings per share (EPS) by an average of 29% per year (using a line of best fit). In the last year, its revenue is down -9.0%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Altisource Portfolio Solutions S.A. Been A Good Investment?
Since shareholders would have lost about 38% over three years, some Altisource Portfolio Solutions S.A. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared total CEO remuneration at Altisource Portfolio Solutions S.A. 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.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. So you may want to check if insiders are buying Altisource Portfolio Solutions shares with their own money (free access).
Important note: Altisource Portfolio Solutions 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.
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 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.