Is Intelsat SA’s (NYSE:I) CEO Pay Fair?

In 2015 Steve Spengler was appointed CEO of Intelsat SA (NYSE:I). 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. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Intelsat

How Does Steve Spengler’s Compensation Compare With Similar Sized Companies?

Our data indicates that Intelsat SA is worth US$3.8b, and total annual CEO compensation is US$766k. We note that’s an increase of 12% above last year. 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$5m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.

You can see a visual representation of the CEO compensation at Intelsat, below.

NYSE:I CEO Compensation November 8th 18
NYSE:I CEO Compensation November 8th 18

Is Intelsat SA Growing?

Over the last three years Intelsat SA has grown its earnings per share (EPS) by an average of 71% per year. Revenue was pretty flat on last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Intelsat SA Been A Good Investment?

I think that the total shareholder return of 331%, over three years, would leave most Intelsat SA shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Intelsat SA is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggest the pay is modest. The strong history of shareholder returns might even have some thinking that Steve Spengler deserves a raise!

Most shareholders like to see a modestly paid CEO combined with strong performance by the company. But it is even better if company insiders are also buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling Intelsat SA shares (free trial).

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.

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 editorial-team@simplywallst.com.