Is Progress Software Corporation’s (NASDAQ:PRGS) CEO Pay Justified?

Yogesh Gupta became the CEO of Progress Software Corporation (NASDAQ:PRGS) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. 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.

See our latest analysis for Progress Software

How Does Yogesh Gupta’s Compensation Compare With Similar Sized Companies?

Our data indicates that Progress Software Corporation is worth US$1.7b, and total annual CEO compensation is US$4.8m. (This figure is for the year to November 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$575k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$4.1m.

So Yogesh Gupta receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Progress Software, below.

NasdaqGS:PRGS CEO Compensation, August 13th 2019
NasdaqGS:PRGS CEO Compensation, August 13th 2019

Is Progress Software Corporation Growing?

Over the last three years Progress Software Corporation has grown its earnings per share (EPS) by an average of 83% per year (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important.

Has Progress Software Corporation Been A Good Investment?

Most shareholders would probably be pleased with Progress Software Corporation for providing a total return of 40% over three years. 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…

Remuneration for Yogesh Gupta is close enough to the median pay for a CEO of a similar sized company .

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Progress Software.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.