Yahoo Finance Should You Worry About Unisys Corporation's (NYSE:UIS) CEO Pay?
Peter Altabef has been the CEO of Unisys Corporation (NYSE:UIS) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Unisys
How Does Peter Altabef's Compensation Compare With Similar Sized Companies?
According to our data, Unisys Corporation has a market capitalization of US$487m, and paid its CEO total annual compensation worth US$6.6m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$991k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. 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.
Thus we can conclude that Peter Altabef receives more in total compensation than the median of a group of companies in the same market, and of similar size to Unisys Corporation. However, this doesn't necessarily mean the pay 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 a visual representation of the CEO compensation at Unisys, below.
Is Unisys Corporation Growing?
Over the last three years Unisys Corporation has grown its earnings per share (EPS) by an average of 79% per year (using a line of best fit). It achieved revenue growth of 4.0% over the last year.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has Unisys Corporation Been A Good Investment?
With a three year total loss of 17%, Unisys Corporation would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared the total CEO remuneration paid by Unisys Corporation, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Whatever your view on compensation, you might want to check if insiders are buying or selling Unisys shares (free trial).
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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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.