Phil Heasley has been the CEO of ACI Worldwide, Inc. (NASDAQ:ACIW) since 2005. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. 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 Phil Heasley’s Compensation Compare With Similar Sized Companies?
Our data indicates that ACI Worldwide, Inc. is worth US$3.1b, and total annual CEO compensation is US$6.1m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$720k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.1m.
That means Phil Heasley receives fairly typical remuneration for the CEO of a company that size. 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, below, how CEO compensation at ACI Worldwide has changed over time.
Is ACI Worldwide, Inc. Growing?
Over the last three years ACI Worldwide, Inc. has shrunk its earnings per share by an average of 74% per year. In the last year, its revenue is down -2.3%.
Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
It could be important to check this free visual depiction of what analysts expect for the future.
Has ACI Worldwide, Inc. Been A Good Investment?
ACI Worldwide, Inc. has served shareholders reasonably well, with a total return of 31% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Phil Heasley is paid around the same as most CEOs of similar size companies.
The company isn’t growing earnings per share, and nor have the total returns inspired us. We wouldn’t say the CEO pay is too high, but one might argue that the company should improve returns to shareholders before increasing it. Shareholders may want to check for free if ACI Worldwide insiders are buying or selling shares.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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 firstname.lastname@example.org.