Is Upland Software Inc (NASDAQ:UPLD) Excessively Paying Its CEO?

In 2010 Jack McDonald was appointed CEO of Upland Software Inc (NASDAQ:UPLD). 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 Upland Software

How Does Jack McDonald’s Compensation Compare With Similar Sized Companies?

According to our data, Upland Software Inc has a market capitalization of US$658m, and pays its CEO total annual compensation worth US$2.0m. Notably, that’s an increase of 142% over the year before. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO compensation of that group was US$2.2m.

So Jack McDonald receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at Upland Software has changed over time.

Is Upland Software Inc Growing?

Upland Software Inc has increased its earnings per share (EPS) by an average of 4.2% a year, over the last three years In the last year, its revenue is up 48%.

It’s great to see that revenue growth is strong. Combined with modest EPS growth, we get a good impression of the company. I wouldn’t say this is necessarily top notch growth, but it is certainly promising.

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 276% over three years, Upland Software Inc has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Jack McDonald is paid around what is normal the leaders of comparable size companies.

The company isn’t showing particularly great growth, but shareholder returns have been pleasing. So considering most shareholders would be happy, we’d say the CEO pay is appropriate.

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 editorial-team@simplywallst.com.