Is Zebra Technologies Corporation’s (NASDAQ:ZBRA) CEO Paid Enough Relative To Peers?

In 2007 Anders Gustafsson was appointed CEO of Zebra Technologies Corporation (NASDAQ:ZBRA). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big 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 Zebra Technologies

How Does Anders Gustafsson’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Zebra Technologies Corporation has a market cap of US$11b, and is paying total annual CEO compensation of US$9.5m. (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$988k. 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. There aren’t very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.

So Anders Gustafsson receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Zebra Technologies, below.

NasdaqGS:ZBRA CEO Compensation, September 2nd 2019
NasdaqGS:ZBRA CEO Compensation, September 2nd 2019

Is Zebra Technologies Corporation Growing?

Over the last three years Zebra Technologies Corporation has grown its earnings per share (EPS) by an average of 119% per year (using a line of best fit). Its revenue is up 11% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.

Has Zebra Technologies Corporation Been A Good Investment?

I think that the total shareholder return of 194%, over three years, would leave most Zebra Technologies Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Anders Gustafsson is paid around what is normal the leaders of larger companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Zebra Technologies.

If you want to buy a stock that is better than Zebra Technologies, this free list of high return, low debt companies is a great place to look.

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 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.