In 2000 Paul Arling was appointed CEO of Universal Electronics Inc (NASDAQ:UEIC). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Universal Electronics
How Does Paul Arling’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Universal Electronics Inc has a market cap of US$474m, and is paying total annual CEO compensation of US$2.4m. That’s a fairly small increase of 1.5% on year before. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO compensation was US$1.5m.
It would therefore appear that Universal Electronics Inc pays Paul Arling 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Universal Electronics has changed over time.
Is Universal Electronics Inc Growing?
On average over the last three years, Universal Electronics Inc has shrunk earnings per share by 64% each year. In the last year, its revenue is up 2.4%.
Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Universal Electronics Inc Been A Good Investment?
With a three year total loss of 34%, Universal Electronics Inc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
We examined the amount Universal Electronics Inc pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.Just as bad, share price gains for investors have failed to materialize, over the same period. Some might well form the view that the CEO is paid too generously!
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.