A Quick Analysis On Upland Software's (NASDAQ:UPLD) CEO Compensation
This article will reflect on the compensation paid to Jack McDonald who has served as CEO of Upland Software, Inc. (NASDAQ:UPLD) since 2010. This analysis will also assess whether Upland Software pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for Upland Software
Comparing Upland Software, Inc.'s CEO Compensation With the industry
Our data indicates that Upland Software, Inc. has a market capitalization of US$1.0b, and total annual CEO compensation was reported as US$7.6m for the year to December 2019. We note that's an increase of 30% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$325k.
On examining similar-sized companies in the industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$3.4m. Hence, we can conclude that Jack McDonald is remunerated higher than the industry median. Moreover, Jack McDonald also holds US$70m worth of Upland Software stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$325k | US$325k | 4% |
Other | US$7.2m | US$5.5m | 96% |
Total Compensation | US$7.6m | US$5.8m | 100% |
Talking in terms of the industry, salary represented approximately 13% of total compensation out of all the companies we analyzed, while other remuneration made up 87% of the pie. Interestingly, the company has chosen to go down an unconventional route in that it pays a smaller salary to Jack McDonald as compared to non-salary compensation over the one-year period examined. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Upland Software, Inc.'s Growth
Over the last three years, Upland Software, Inc. has shrunk its earnings per share by 29% per year. In the last year, its revenue is up 45%.
Investors would be a bit wary of companies that have lower earnings But in contrast the revenue growth is strong, suggesting future potential for earnings growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Upland Software, Inc. Been A Good Investment?
Boasting a total shareholder return of 75% over three years, Upland Software, Inc. has done well by shareholders. 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.
In Summary...
Upland Software primarily uses non-salary benefits to reward its CEO. As previously discussed, Jack is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But Upland Software is growing its revenue, and total shareholder returns have also been pleasing for the last three years. Importantly though, EPS has not been growing over the same stretch. All things considered, although earnings growth would've been nice, the positive investor returns and revenue growth lead us to believe Jack 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 Upland Software that investors should be aware of in a dynamic business environment.
Switching gears from Upland Software, 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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