Yahoo Finance It's Unlikely That Unisys Corporation's (NYSE:UIS) CEO Will See A Huge Pay Rise This Year
Key Insights
Unisys' Annual General Meeting to take place on 1st of May
CEO Peter Altabef's total compensation includes salary of US$991.0k
The total compensation is 42% higher than the average for the industry
Unisys' EPS grew by 21% over the past three years while total shareholder loss over the past three years was 77%
The underwhelming share price performance of Unisys Corporation (NYSE:UIS) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 1st of May. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
View our latest analysis for Unisys
Comparing Unisys Corporation's CEO Compensation With The Industry
Our data indicates that Unisys Corporation has a market capitalization of US$377m, and total annual CEO compensation was reported as US$6.1m for the year to December 2023. Notably, that's a decrease of 14% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$991k.
For comparison, other companies in the American IT industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$4.3m. Hence, we can conclude that Peter Altabef is remunerated higher than the industry median. What's more, Peter Altabef holds US$6.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$991k | US$991k | 16% |
Other | US$5.1m | US$6.1m | 84% |
Total Compensation | US$6.1m | US$7.1m | 100% |
On an industry level, around 31% of total compensation represents salary and 69% is other remuneration. It's interesting to note that Unisys allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Unisys Corporation's Growth Numbers
Unisys Corporation's earnings per share (EPS) grew 21% per year over the last three years. In the last year, its revenue is up 1.8%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Unisys Corporation Been A Good Investment?
Few Unisys Corporation shareholders would feel satisfied with the return of -77% over three years. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Unisys that investors should look into moving forward.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
