Friday, August 30, 2019

Austin, Texas-Based Software Cloud Company Upland Software Inc's Top-Tier Executives Average Pay Raise Was an Off-the-Charts 82.3% Per Year During the Past Five Years (2014-2018) Since Its 2014 IPO

The third Democratic 2020 Presidential candidate televised debate will be held in Houston, Texas on September 12, 2019.  Texas is also the home state of Julian Castro and Beto O'Rourke, who have both gained significant momentum in the past month.

The key issue to Texas citizens should be the huge and continuing Income Inequality Expansion which is at the core of many critical problems the US faces.

Thus I will be doing research and making posts on the average pay raise per year that the Top-Tier Executives of Texas Companies were rewarded with in the past ten years.  And I'll start with the large Texas Non-Oil & Gas Companies. 

The 52nd Texas Non-Oil & Gas Company I am addressing here is Upland Software Inc.

From annual compensation information contained in Company Proxy Statement filings with the US SEC, the chart at the bottom below shows Upland Software's Top-Tier Executives Annual Total Compensation for each of two consecutive full years of employment for the past five years subsequent to its 2014 IPO.
  
Upland Software's Top-Tier Executives Average Pay Raise was an off-the-charts 82.3%
 per year for the past five years, which is the 9th highest of the 52 large Texas Non-Oil & Gas Companies I have addressed so far.
  1. SailPoint Technologies +278.1% per year for the past two years
  2. Copart +183.2% per year for the past ten years
  3. Q2 Holdings +180.3% per year for the past five years
  4. SolarWinds +114.4% per year for seven of the past ten years
  5. Nexstar Media Group +102.9% per year for the past ten years
  6. Reata Pharmaceuticals +99.5% per year for the past four years
  7. American Airlines Group +85.9% per year for nine of the past ten years
  8. Helen of Troy +84.4% per year for the past ten years
  9. Upland Software +82.3% per year for the past five years
  10. Invitation Homes +78.6% per year for the past two years
  11. Tyler Technologies +61.2% per year for the past ten years
  12. Wingstop +54.2% per year for the past four years
  13. Builders FirstSource +50.9% per year for the past ten years
  14. Vistra Energy +50.6% in the past year 
  15. Rackspace Holdings +50.2% per year for seven of the past ten years
  16. LyondellBasell +45.9% per year for the past eight years
  17. Six Flags Entertainment +37.5% per year for the past seven years
  18. RealPage +29.2% per year for the past nine years
  19. Quanta Services +28.1% per year for the past ten years
  20. Celanese +27.8% per year for the last ten years
  21. National Instruments +25.5% per year for the last ten years
  22. Yum China Holdings +23.8% per year for the past 5 years
  23. Eagle Materials +20.5% per year for the past ten years
  24. D R Horton +20.1% per year for the past ten years
  25. Dell Technologies +18.8% per year for seven of the past ten years
  26. Sysco +18.7% per year for the past ten years
  27. Waste Connections +18.1% per year for the past ten years
  28. Cirrus Logic +18.0% per year for the past ten years
  29. Southwest Airlines +18.0% per year for the past ten years
  30. Sabre Corp +17.7% per year for the past five years
  31. Huntsman Corp +17.3% per year for the past ten years
  32. Cinemark Holdings +16.4% per year for the past ten years
  33. Westlake Chemical +16.1% per year for the past ten years
  34. Global Life +15.5% per year for the past ten years
  35. El Paso Electric Co +15.5% per year for the past ten years
  36. American Campus Communities REIT +15.4% per year for the past ten years
  37. Atmos Energy +14.4% per year for the past ten years
  38. AT&T +13.8% per year for the past ten years
  39. Waste Management +13.2% per year for the past ten years
  40. Match Group +12.2% per year for the past six years
  41. Calpine +11.2% per year for the past ten years
  42. Service Corp International +10.8% per year for the past ten years
  43. Camden Property Trust +10.4% per year for the past ten years
  44. Tenet Healthcare +10.3% per year for the past ten years
  45. Jacobs Engineering Group +8.7% per year for the past ten years
  46. Texas Instruments +7.2% per year for the past ten years
  47. Cullen/Frost Bankers +6.9% per year for the past ten years
  48. Crown Castle International +6.3% per year for the past ten years
  49. Kimberly-Clark +5.8% per year for the past ten years
  50. CenterPoint Energy +5.8% per year for the past ten years
  51. Lennox international +5.4% per year for the past ten years
  52. Silicon Laboratories +4.4% per year for the past ten years
There have been many US Government laws enacted in the past two decades that have substantially increased income inequality expansion but the only highly effective US Government law enacted by either party in the past two decades that has substantially reduced income inequality expansion is Obamacare and the political right is continually trying to repeal and replace it and three of the top four Democratic Presidential candidates now leading in the polls are effectively running as their principal issue to do in essence precisely the same thing ..... repeal and replace Obamacare ..... but to do it with either a pure or a version of Medicare For All.  

The pure Medicare For All advocated by both Bernie Sanders and Elizabeth Warren and which was co-sponsored in a US Senate bill by Kamala Harris is off-the-charts enormously expensive and would take up an enormous amount of wasted time with no positive result since it has no chance of getting passed legislatively.  The US Government CBO hasn't been able to score the cost of a pure version of Medicare For All so far because the proposals have not been nearly specific enough.  If and when they are specific enough, the CBO scoring will make people shake in their boots and wonder just how any Presidential candidate could propose something so fiscally preposterous.  Just given their near-sighted stance on a pure version of Medicare For All, if the Democratic nominee is any of the three of them, it will be extremely difficult for any of them to beat Trump in the general election.  It is that simple.

On the other hand, if Elizabeth Warren got more rational and wisely altered her position some on Medicare For All, she would have a very good chance of beating Trump. 


My objective is to get a better handle on just why the US and particularly here Texas has such massive continuing Income Inequality Expansion ..... it appears to be predominantly about the relative long-term annual pay raise percentages for the executives of a Company vs the many non-executive employees of a Company, coupled with the stock price appreciation subsequent to the time the company executives were rewarded in their pay with stock equity compensation.

To fix Income Inequality driven mainly by Company and its Board of Director choices on Percentage Annual Pay Raises, the US Government should step in and pass wisely-designed, simple but effective Fair Pay Raise Income Inequality Narrowing Company tax incentives for rewarding non-executive employees with fair pay increases ..... the carrot ..... and Company tax disincentives for rewarding executive employees with clearly excessively high pay increases ..... the stick.  I am certain ..... it is simple math ..... that this tax proposal would be very effective in substantially reducing the huge income inequality expansion that has occurred for decades in annual percentage pay raises between company executives and the rest of the company employees. 

And the continuing annual net tax revenues raised by the US Government here should be set up in a separate fund to be used only for wise additional income inequality narrowing initiatives.  This fund should be run by an outside group made up entirely of minorities harmed the most by Income Inequality Expansion of the past decades  .....all women, all blacks, all Latinos, all other non-white people, all past and present union members, all LGBTQ, all non-employee contract workers and all middle and lower income people of all ages, including those retired.

Also, the US Government should require all US Corporate Boards to include at least one worker representative and to exclude any Company Executive.

FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec
Upland Software 2018 2017 2017 2016 2016 2015 2015 2014 2014 2013
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
McDonald CEO       5,837       3,001       3,001          821          821          240          240       1,792       1,814          356
Mattox President COO       3,721       2,706       2,706       1,451       1,451       1,311  N/A   N/A 
Hill CFO       2,650       1,724       1,724          699          699          514          514          285
Henley EVP          668          427
 Totals      12,208       7,431       7,431       2,971       2,971       2,065          754       2,077       2,482          783
Annual % Change vs Prior Year 64.3% 150.1% 43.9% -63.7% 217.0%
5 Year Average Per Year % Change 82.3%