Derek Dewan has been the CEO of GEE Group, Inc. (NYSEMKT:JOB) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Derek Dewan Compare With Other Companies In The Industry?
According to our data, GEE Group, Inc. has a market capitalization of US$25m, and paid its CEO total annual compensation worth US$300k over the year to September 2020. That is, the compensation was roughly the same as last year. Notably, the salary of US$300k is the entirety of the CEO compensation.
For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$688k. Accordingly, GEE Group pays its CEO under the industry median. Moreover, Derek Dewan also holds US$2.6m worth of GEE Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
On an industry level, roughly 22% of total compensation represents salary and 78% is other remuneration. At the company level, GEE Group pays Derek Dewan solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
GEE Group, Inc.'s Growth
Over the past three years, GEE Group, Inc. has seen its earnings per share (EPS) grow by 14% per year. In the last year, its revenue is down 14%.
Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in 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 GEE Group, Inc. Been A Good Investment?
Since shareholders would have lost about 50% over three years, some GEE Group, Inc. investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
GEE Group rewards its CEO solely through a salary, ignoring non-salary benefits completely. As previously discussed, Derek is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, the EPS growth over three years is certainly impressive. Considering EPS are on the up, we would say Derek is compensated fairly. Shareholders, though, would ideally like to see shareholder returns head north before they agree to any raise.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 5 warning signs for GEE Group (of which 2 are potentially serious!) that you should know about in order to have a holistic understanding of the stock.
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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