CSG Systems International, Inc.'s (NASDAQ:CSGS) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• CSG Systems International will host its Annual General Meeting on 15th of May
• Salary of US$725.4k is part of CEO Brian Shepherd's total remuneration
• The total compensation is 94% higher than the average for the industry
• Over the past three years, CSG Systems International's EPS grew by 8.6% and over the past three years, the total shareholder return was 0.1%

Performance at CSG Systems International, Inc. (NASDAQ:CSGS) has been reasonably good and CEO Brian Shepherd has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 15th of May. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for CSG Systems International

Comparing CSG Systems International, Inc.'s CEO Compensation With The Industry

According to our data, CSG Systems International, Inc. has a market capitalization of US$1.2b, and paid its CEO total annual compensation worth US$8.0m over the year to December 2023. That's just a smallish increase of 6.4% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$725k.

For comparison, other companies in the American Professional Services industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$4.1m. Accordingly, our analysis reveals that CSG Systems International, Inc. pays Brian Shepherd north of the industry median. Furthermore, Brian Shepherd directly owns US$21m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$725k	US$700k	9%
Other	US$7.3m	US$6.8m	91%
Total Compensation	US$8.0m	US$7.5m	100%

On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. In CSG Systems International's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

CSG Systems International, Inc.'s Growth

CSG Systems International, Inc.'s earnings per share (EPS) grew 8.6% per year over the last three years. In the last year, its revenue is up 3.7%.

We'd prefer higher revenue growth, but the modest improvement in EPS is good. Considering these factors we'd say performance has been pretty decent, though not amazing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has CSG Systems International, Inc. Been A Good Investment?

With a total shareholder return of 0.1% over three years, CSG Systems International, Inc. has done okay by shareholders, but there's always room for improvement. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for CSG Systems International that investors should be aware of in a dynamic business environment.

Switching gears from CSG Systems International, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.