In 2009 John Weinhardt was appointed CEO of Unique Fabricating, Inc. (NYSEMKT:UFAB). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does John Weinhardt’s Compensation Compare With Similar Sized Companies?
Our data indicates that Unique Fabricating, Inc. is worth US$40m, and total annual CEO compensation is US$579k. (This figure is for the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at US$360k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$427k.
As you can see, John Weinhardt is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Unique Fabricating, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Unique Fabricating has changed from year to year.
Is Unique Fabricating, Inc. Growing?
On average over the last three years, Unique Fabricating, Inc. has shrunk earnings per share by 4.1% each year (measured with a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
Unfortunately, earnings per share have trended lower over the last three years. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Unique Fabricating, Inc. Been A Good Investment?
With a three year total loss of 60%, Unique Fabricating, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Unique Fabricating, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.We think many shareholders would be underwhelmed with the business growth over the last three years.
Arguably worse, investors are without a positive return for the last three years. Some might well form the view that the CEO is paid too generously! Shareholders may want to check for free if Unique Fabricating insiders are buying or selling shares.
If you want to buy a stock that is better than Unique Fabricating, 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 email@example.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.