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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. 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?
At the time of writing our data says that ACI Worldwide, Inc. has a market cap of US$3.9b, and is paying total annual CEO compensation of US$6.1m. (This is based on the year to December 2017). While we always look at total compensation first, we note that the salary component is less, 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$5.0m.
That means Phil Heasley receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at ACI Worldwide, below.
Is ACI Worldwide, Inc. Growing?
Over the last three years ACI Worldwide, Inc. has shrunk its earnings per share by an average of 69% per year (measured with a line of best fit). It saw its revenue drop -1.4% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-year. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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?
Most shareholders would probably be pleased with ACI Worldwide, Inc. for providing a total return of 65% over three years. So they may not be at all concerned if the CEO were to be 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.
We’re not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we can’t see a reason to suggest the pay is inappropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling ACI Worldwide (free visualization of insider trades).
If you want to buy a stock that is better than ACI Worldwide, this free list of high return, low debt companies is a great place to look.
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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. Thank you for reading.