Gary Norcross became the CEO of Fidelity National Information Services, Inc. (NYSE:FIS) in 2015, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Fidelity National Information Services.
How Does Total Compensation For Gary Norcross Compare With Other Companies In The Industry?
According to our data, Fidelity National Information Services, Inc. has a market capitalization of US$91b, and paid its CEO total annual compensation worth US$28m over the year to December 2019. We note that's an increase of 50% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.2m.
In comparison with other companies in the industry with market capitalizations over US$8.0b , the reported median total CEO compensation was US$11m. Hence, we can conclude that Gary Norcross is remunerated higher than the industry median. Furthermore, Gary Norcross directly owns US$112m worth of shares in the company, implying that they are deeply invested in the company's success.
Speaking on an industry level, nearly 14% of total compensation represents salary, while the remainder of 86% is other remuneration. Investors may find it interesting that Fidelity National Information Services paid a marginal salary to Gary Norcross, over the past year, focusing on non-salary compensation instead. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Fidelity National Information Services, Inc.'s Growth Numbers
Over the last three years, Fidelity National Information Services, Inc. has shrunk its earnings per share by 70% per year. Its revenue is up 45% over the last year.
Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Fidelity National Information Services, Inc. Been A Good Investment?
Boasting a total shareholder return of 63% over three years, Fidelity National Information Services, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Fidelity National Information Services prefers rewarding its CEO through non-salary benefits. As we touched on above, Fidelity National Information Services, Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But Fidelity National Information Services is growing its revenue, and total shareholder returns have also been pleasing for the last three years. The only sore spot is EPS growth, which is negative over the same period. All things considered, although EPS growth would've been nice, the positive investor returns and revenue growth lead us to believe Gary is appropriately paid.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Fidelity National Information Services that investors should be aware of in a dynamic business environment.
Switching gears from Fidelity National Information Services, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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