We Take A Look At Whether CBIZ, Inc.'s (NYSE:CBZ) CEO May Be Underpaid

Key Insights

• CBIZ's Annual General Meeting to take place on 9th of May
• Total pay for CEO Jerry Grisko includes US$950.0k salary
• Total compensation is 42% below industry average
• CBIZ's EPS grew by 14% over the past three years while total shareholder return over the past three years was 111%

Shareholders will be pleased by the impressive results for CBIZ, Inc. (NYSE:CBZ) recently and CEO Jerry Grisko has played a key role. This would be kept in mind at the upcoming AGM on 9th of May which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

View our latest analysis for CBIZ

Comparing CBIZ, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that CBIZ, Inc. has a market capitalization of US$3.6b, and reported total annual CEO compensation of US$5.2m for the year to December 2023. That's just a smallish increase of 6.8% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$950k.

For comparison, other companies in the American Professional Services industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$9.0m. In other words, CBIZ pays its CEO lower than the industry median. Moreover, Jerry Grisko also holds US$75m worth of CBIZ stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$950k	US$944k	18%
Other	US$4.3m	US$3.9m	82%
Total Compensation	US$5.2m	US$4.9m	100%

On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. According to our research, CBIZ has allocated a higher percentage of pay to salary in comparison to the wider industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

CBIZ, Inc.'s Growth

CBIZ, Inc. has seen its earnings per share (EPS) increase by 14% a year over the past three years. It achieved revenue growth of 11% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 111%, over three years, would leave most CBIZ, Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for CBIZ that investors should be aware of in a dynamic business environment.

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.