In 2007 Randy Ramlo was appointed CEO of United Fire Group Inc (NASDAQ:UFCS). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. 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.
How Does Randy Ramlo’s Compensation Compare With Similar Sized Companies?
Our data indicates that United Fire Group Inc is worth US$1.3b, and total annual CEO compensation is US$2.6m. We note that’s an increase of 29% above last year. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO compensation was US$3.6m.
So Randy Ramlo receives a similar amount to the median CEO pay, amongst 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.
The graphic below shows how CEO compensation at United Fire Group has changed from year to year.
Is United Fire Group Inc Growing?
United Fire Group Inc has reduced its earnings per share by an average of 25% a year, over the last three years. Its revenue is up 4.6% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. So this free report on the analyst consensus forecasts could help you make a master move on this stock.
Has United Fire Group Inc Been A Good Investment?
I think that the total shareholder return of 43%, over three years, would leave most United Fire Group Inc shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
Remuneration for Randy Ramlo is close enough to the median pay for a CEO of a similar sized company .
The company isn’t growing earnings per share, but shareholder returns have been strong over the last three years. So we can’t see a reason to suggest the pay is inappropriate.
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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 email@example.com.