Scott Greenberg became the CEO of GP Strategies Corporation (NYSE:GPX) in 2005. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Scott Greenberg’s Compensation Compare With Similar Sized Companies?
Our data indicates that GP Strategies Corporation is worth US$209m, and total annual CEO compensation is US$1.1m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$560k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO compensation was US$973k.
So Scott Greenberg is paid around the average of 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 GP Strategies, below.
Is GP Strategies Corporation Growing?
On average over the last three years, GP Strategies Corporation has shrunk earnings per share by 20% each year. Its revenue is up 1.7% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has GP Strategies Corporation Been A Good Investment?
Since shareholders would have lost about 47% over three years, some GP Strategies Corporation shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Scott Greenberg is paid around the same as most CEOs of similar size companies.
The company isn’t growing EPS, and shareholder returns have been disappointing. Few would argue that it’s wise for the company to pay any more, before returns improve. So you may want to check if insiders are buying GP Strategies shares with their own money (free access).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.