Steve Abramson has been the CEO of Universal Display Corporation (NASDAQ:OLED) since 2008. 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.
How Does Steve Abramson’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Universal Display Corporation has a market cap of US$3.9b, and is paying total annual CEO compensation of US$4.8m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$667k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.1m.
So Steve Abramson is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Universal Display, below.
Is Universal Display Corporation Growing?
Universal Display Corporation has increased its earnings per share (EPS) by an average of 48% a year, over the last three years (using a line of best fit). Revenue was pretty flat on last year.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Universal Display Corporation Been A Good Investment?
Boasting a total shareholder return of 70% over three years, Universal Display 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.
Steve Abramson is paid around what is normal the leaders of comparable size companies.
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 Universal Display insiders are buying or selling shares.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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 email@example.com.