Bill Grubbs became the CEO of Cross Country Healthcare Inc (NASDAQ:CCRN) in 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Bill Grubbs’s Compensation Compare With Similar Sized Companies?
According to our data, Cross Country Healthcare Inc has a market capitalization of US$307m, and pays its CEO total annual compensation worth US$2.7m. That’s a fairly small increase of 6.9% on year before. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.6m.
As you can see, Bill Grubbs is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Cross Country Healthcare Inc is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Cross Country Healthcare has changed over time.
Is Cross Country Healthcare Inc Growing?
On average over the last three years, Cross Country Healthcare Inc has grown earnings per share (EPS) by 71% each year. Its revenue is down -3.8% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. So this free visual report on analyst forecasts could hold they key to an excellent investment decision.
Has Cross Country Healthcare Inc Been A Good Investment?
With a three year total loss of 53%, Cross Country Healthcare Inc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by Cross Country Healthcare Inc, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation.
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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 email@example.com.