This Is Why Shareholders Will Hold Back On A Pay Rise For EVERTEC, Inc.'s (NYSE:EVTC) CEO This Year
Key Insights
- EVERTEC's Annual General Meeting to take place on 22nd of May
- Salary of US$844.5k is part of CEO Mac Schuessler's total remuneration
- The total compensation is similar to the average for the industry
- Over the past three years, EVERTEC's EPS fell by 3.8% and over the past three years, the total shareholder return was 1.1%
Under the guidance of CEO Mac Schuessler, EVERTEC, Inc. (NYSE:EVTC) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 22nd of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
Check out our latest analysis for EVERTEC
How Does Total Compensation For Mac Schuessler Compare With Other Companies In The Industry?
At the time of writing, our data shows that EVERTEC, Inc. has a market capitalization of US$2.3b, and reported total annual CEO compensation of US$9.0m for the year to December 2024. Notably, that's a decrease of 38% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$844k.
On comparing similar companies from the American Diversified Financial industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$8.3m. This suggests that EVERTEC remunerates its CEO largely in line with the industry average. Moreover, Mac Schuessler also holds US$92k worth of EVERTEC stock directly under their own name.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$844k | US$816k | 9% |
| Other | US$8.1m | US$14m | 91% |
| Total Compensation | US$9.0m | US$14m | 100% |
On an industry level, around 12% of total compensation represents salary and 88% is other remuneration. EVERTEC pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
EVERTEC, Inc.'s Growth
EVERTEC, Inc. has reduced its earnings per share by 3.8% a year over the last three years. It achieved revenue growth of 17% over the last year.
The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has EVERTEC, Inc. Been A Good Investment?
EVERTEC, Inc. has not done too badly by shareholders, with a total return of 1.1%, over three years. It would be nice to see that metric improve in the future. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.
To Conclude...
The overall company performance has been commendable, however there are still areas for improvement. We reckon that there are some shareholders who may be hesitant to increase CEO pay further until EPS growth starts to improve, despite the robust revenue growth.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for EVERTEC that investors should be aware of in a dynamic business environment.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
Valuation is complex, but we're here to simplify it.
Discover if EVERTEC might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.