Does Ultralife Corporation’s (NASDAQ:ULBI) CEO Pay Reflect Performance?

Mike Popielec became the CEO of Ultralife Corporation (NASDAQ:ULBI) in 2010. 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 – 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.

View our latest analysis for Ultralife

How Does Mike Popielec’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Ultralife Corporation has a market cap of US$219m, and is paying total annual CEO compensation of US$1.1m. (This is based on the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$504k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.0m.

So Mike Popielec is paid around the average of 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 Ultralife, below.

NasdaqGM:ULBI CEO Compensation, April 20th 2019
NasdaqGM:ULBI CEO Compensation, April 20th 2019

Is Ultralife Corporation Growing?

Over the last three years Ultralife Corporation has grown its earnings per share (EPS) by an average of 69% per year (using a line of best fit). It achieved revenue growth of 1.9% over the last year.

This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Ultralife Corporation Been A Good Investment?

I think that the total shareholder return of 87%, over three years, would leave most Ultralife 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…

Mike Popielec is paid around the same as most CEOs of similar size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Ultralife.

Important note: Ultralife may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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.