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Bret Griess has been the CEO of CSG Systems International, Inc. (NASDAQ:CSGS) since 2016. 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 Bret Griess’s Compensation Compare With Similar Sized Companies?
According to our data, CSG Systems International, Inc. has a market capitalization of US$1.4b, and pays its CEO total annual compensation worth US$6.5m. (This is based on the year to December 2018). That’s a notable increase of 29% on last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$700k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$4.1m.
As you can see, Bret Griess is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean CSG Systems International, Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at CSG Systems International, below.
Is CSG Systems International, Inc. Growing?
Over the last three years CSG Systems International, Inc. has shrunk its earnings per share by an average of 6.9% per year (measured with a line of best fit). Its revenue is up 15% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And while it’s good to see some good revenue growth recently, the growth isn’t really fast enough for me to put aside my concerns around earnings. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has CSG Systems International, Inc. Been A Good Investment?
CSG Systems International, Inc. has served shareholders reasonably well, with a total return of 13% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
We examined the amount CSG Systems International, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.We think many shareholders would be underwhelmed with the business growth over the last three years.
And shareholder returns are decent but not great. We also note that the CEO compensation is well up on last year. So we think more research is needed, but we don’t think the CEO underpaid. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at CSG Systems International.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.