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

Key Insights

• CSG Systems International to hold its Annual General Meeting on 14th of May
• Total pay for CEO Brian Shepherd includes US$754.5k salary
• Total compensation is 78% above industry average
• Over the past three years, CSG Systems International's EPS grew by 12% and over the past three years, the total shareholder return was 15%

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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 14th of May. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for CSG Systems International

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

Our data indicates that CSG Systems International, Inc. has a market capitalization of US$1.7b, and total annual CEO compensation was reported as US$11m for the year to December 2024. Notably, that's an increase of 42% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$755k.

For comparison, other companies in the American Professional Services industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$6.4m. Hence, we can conclude that Brian Shepherd is remunerated higher than the industry median. Moreover, Brian Shepherd also holds US$38m worth of CSG Systems International stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	US$755k	US$725k	7%
Other	US$11m	US$7.3m	93%
Total Compensation	US$11m	US$8.0m	100%

On an industry level, roughly 12% of total compensation represents salary and 88% is other remuneration. It's interesting to note that CSG Systems International allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at CSG Systems International, Inc.'s Growth Numbers

CSG Systems International, Inc. has seen its earnings per share (EPS) increase by 12% a year over the past three years. It achieved revenue growth of 2.4% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

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

With a total shareholder return of 15% over three years, CSG Systems International, Inc. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for CSG Systems International that investors should think about before committing capital to this stock.

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

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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.