In 2005 Jeff Yabuki was appointed CEO of Fiserv, Inc. (NASDAQ:FISV). First, this article will compare CEO compensation with compensation at other large companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Jeff Yabuki’s Compensation Compare With Similar Sized Companies?
Our data indicates that Fiserv, Inc. is worth US$78b, and total annual CEO compensation was reported as US$12m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$840k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. Once you start looking at very large companies, you need to take a broader range, because there simply aren’t that many of them.
That means Jeff Yabuki receives fairly typical remuneration for the CEO of a large company. 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 Fiserv has changed over time.
Is Fiserv, Inc. Growing?
On average over the last three years, Fiserv, Inc. has grown earnings per share (EPS) by 8.2% each year (using a line of best fit). It achieved revenue growth of 33% over the last year.
I like the look of the strong year-on-year improvement in revenue. With that in mind, the modestly improving EPS seems positive. I wouldn’t say this is necessarily top notch growth, but it is certainly promising. It could be important to check this free visual depiction of what analysts expect for the future.
Has Fiserv, Inc. Been A Good Investment?
Boasting a total shareholder return of 119% over three years, Fiserv, Inc. 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.
Remuneration for Jeff Yabuki is close enough to the median pay for a CEO of a large company .
While the growth could be better, the shareholder returns are clearly good. So considering most shareholders would be happy, we’d say the CEO pay is appropriate. So you may want to check if insiders are buying Fiserv shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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