Yahoo Finance Is Unico American Corporation’s (NASDAQ:UNAM) CEO Pay Justified?
In 2009 Cary Cheldin was appointed CEO of Unico American Corporation (NASDAQ:UNAM). 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Unico American
How Does Cary Cheldin’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Unico American Corporation has a market cap of US$30m, and is paying total annual CEO compensation of US$379k. (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$331k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$296k.
That means Cary Cheldin receives fairly typical remuneration for the CEO of a company that size. 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 Unico American, below.
Is Unico American Corporation Growing?
Unico American Corporation has reduced its earnings per share by an average of 68% a year, over the last three years. Its revenue is down -4.4% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Unico American Corporation Been A Good Investment?
Since shareholders would have lost about 37% over three years, some Unico American Corporation shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
Cary Cheldin is paid around the same as most CEOs of similar size companies.
After looking at EPS and total shareholder returns, it’s certainly hard to argue the company has performed well, since both metrics are down. Few would argue that it’s wise for the company to pay any more, before returns improve. Whatever your view on compensation, you might want to check if insiders are buying or selling Unico American shares (free trial).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of 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 editorial-team@simplywallst.com.
