Uli Spiesshofer has been the CEO of ABB Ltd (VTX:ABBN) since 2013. First, this article will compare CEO compensation with compensation at other large companies. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for ABB
How Does Uli Spiesshofer’s Compensation Compare With Similar Sized Companies?
According to our data, ABB Ltd has a market capitalization of CHF42b, and pays its CEO total annual compensation worth US$5.6m. That’s below the compensation, last year. We looked at a group of companies with market capitalizations over CHF7.9b and the median CEO compensation was CHF4.8m.
That means Uli Spiesshofer receives fairly typical remuneration for the CEO of a large company. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at ABB has changed from year to year.
Is ABB Ltd Growing?
On average over the last three years, ABB Ltd has grown earnings per share (EPS) by 6.5% each year. Its revenue is up 6.0% over last year.
I’m not particularly impressed by the revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has ABB Ltd Been A Good Investment?
With a total shareholder return of 17% over three years, ABB Ltd shareholders would, in general, be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary…
Remuneration for Uli Spiesshofer is close enough to the median pay for a CEO of a large company .
We see room for improved growth, as well as fairly unremarkable returns over the last three years. But we don’t think the CEO compensation is a problem.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
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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.