Marc Lautenbach has been the CEO of Pitney Bowes Inc. (NYSE:PBI) since 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Marc Lautenbach’s Compensation Compare With Similar Sized Companies?
According to our data, Pitney Bowes Inc. has a market capitalization of US$830m, and paid its CEO total annual compensation worth US$8.1m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$992k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.6m.
It would therefore appear that Pitney Bowes Inc. pays Marc Lautenbach more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. 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 Pitney Bowes has changed from year to year.
Is Pitney Bowes Inc. Growing?
Pitney Bowes Inc. has increased its earnings per share (EPS) by an average of 3.9% a year, over the last three years (using a line of best fit). It achieved revenue growth of 8.3% over the last year.
I’d prefer higher revenue growth, but it is good to see modest EPS growth. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Shareholders might be interested in this free visualization of analyst forecasts.
Has Pitney Bowes Inc. Been A Good Investment?
With a three year total loss of 63%, Pitney Bowes Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at Pitney Bowes Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. So you may want to check if insiders are buying Pitney Bowes 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.
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.
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. Thank you for reading.