Cary Cheldin became the CEO of Unico American Corporation (NASDAQ:UNAM) in 2009. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
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$31m, and is paying total annual CEO compensation of US$357k. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$331k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$495k.
So Cary Cheldin receives a similar amount to the median CEO pay, amongst 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, below, how CEO compensation at Unico American has changed over time.
Is Unico American Corporation Growing?
Over the last three years Unico American Corporation has shrunk its earnings per share by an average of 14% per year (measured with a line of best fit). In the last year, its revenue is down -14%.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
Has Unico American Corporation Been A Good Investment?
With a three year total loss of 49%, Unico American Corporation would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
Remuneration for Cary Cheldin is close enough to the median pay for a CEO of a similar sized company .
The company isn’t growing EPS, and shareholder returns have been disappointing. Few would argue that it’s wise for the company to pay any more, before returns improve. So you may want to check if insiders are buying Unico American shares with their own money (free access).
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.
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 firstname.lastname@example.org. 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.