Anand Vadapalli has been the CEO of Alaska Communications Systems Group Inc (NASDAQ:ALSK) since 2011. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Anand Vadapalli’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Alaska Communications Systems Group Inc has a market cap of US$87m, and is paying total annual CEO compensation of US$1m. That’s less than last year. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$291k.
Thus we can conclude that Anand Vadapalli receives more in total compensation than the median of a group of companies in the same market, and of similar size to Alaska Communications Systems Group Inc. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Alaska Communications Systems Group, below.
Is Alaska Communications Systems Group Inc Growing?
Over the last three years Alaska Communications Systems Group Inc has shrunk its earnings per share by an average of 86% per year. It saw its revenue drop -1.0% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Alaska Communications Systems Group Inc Been A Good Investment?
With a three year total loss of 32%, Alaska Communications Systems Group Inc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at Alaska Communications Systems Group Inc with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Over the same period, investors would have come away with nothing in the way of share price gains. This analysis suggests to us that the CEO is paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling Alaska Communications Systems Group Inc shares (free trial).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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 email@example.com.