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Univest Financial Corporation's (NASDAQ:UVSP) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights

  • Univest Financial will host its Annual General Meeting on 25th of April

  • Salary of US$806.0k is part of CEO Jeff Schweitzer's total remuneration

  • Total compensation is similar to the industry average

  • Univest Financial's EPS grew by 14% over the past three years while total shareholder loss over the past three years was 23%

In the past three years, the share price of Univest Financial Corporation (NASDAQ:UVSP) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 25th of April. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for Univest Financial

How Does Total Compensation For Jeff Schweitzer Compare With Other Companies In The Industry?

According to our data, Univest Financial Corporation has a market capitalization of US$549m, and paid its CEO total annual compensation worth US$1.6m over the year to December 2023. Notably, that's a decrease of 12% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$806k.

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In comparison with other companies in the American Banks industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$1.5m. This suggests that Univest Financial remunerates its CEO largely in line with the industry average. Furthermore, Jeff Schweitzer directly owns US$1.7m worth of shares in the company.

Component

2023

2022

Proportion (2023)

Salary

US$806k

US$775k

49%

Other

US$824k

US$1.1m

51%

Total Compensation

US$1.6m

US$1.8m

100%

Talking in terms of the industry, salary represented approximately 45% of total compensation out of all the companies we analyzed, while other remuneration made up 55% of the pie. Univest Financial is paying a higher share of its remuneration through a salary in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

Univest Financial Corporation's Growth

Univest Financial Corporation has seen its earnings per share (EPS) increase by 14% a year over the past three years. In the last year, its revenue is up 1.1%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Univest Financial Corporation Been A Good Investment?

Given the total shareholder loss of 23% over three years, many shareholders in Univest Financial Corporation are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Univest Financial that investors should think about before committing capital to this stock.

Important note: Univest Financial is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.