This Is Why CBIZ, Inc.'s (NYSE:CBZ) CEO Compensation Looks Appropriate

Key Insights

• CBIZ will host its Annual General Meeting on 15th of May
• CEO Jerry Grisko's total compensation includes salary of US$950.0k
• The total compensation is similar to the average for the industry
• Over the past three years, CBIZ's EPS grew by 2.6% and over the past three years, the total shareholder return was 88%

We've discovered 4 warning signs about CBIZ. View them for free.

Under the guidance of CEO Jerry Grisko, CBIZ, Inc. (NYSE:CBZ) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 15th of May. We present our case of why we think CEO compensation looks fair.

See our latest analysis for CBIZ

How Does Total Compensation For Jerry Grisko Compare With Other Companies In The Industry?

At the time of writing, our data shows that CBIZ, Inc. has a market capitalization of US$3.8b, and reported total annual CEO compensation of US$5.4m for the year to December 2024. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at US$950k.

On examining similar-sized companies in the American Professional Services industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$7.2m. This suggests that CBIZ remunerates its CEO largely in line with the industry average. What's more, Jerry Grisko holds US$77m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	US$950k	US$950k	18%
Other	US$4.4m	US$4.3m	82%
Total Compensation	US$5.4m	US$5.2m	100%

On an industry level, roughly 12% of total compensation represents salary and 88% is other remuneration. According to our research, CBIZ has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

CBIZ, Inc.'s Growth

Over the past three years, CBIZ, Inc. has seen its earnings per share (EPS) grow by 2.6% per year. Its revenue is up 32% over the last year.

It's great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn't shabby. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. 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 CBIZ, Inc. Been A Good Investment?

We think that the total shareholder return of 88%, over three years, would leave most CBIZ, Inc. shareholders smiling. 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...

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, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 4 warning signs for CBIZ (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.