Stock Analysis

Increases to CEO Compensation Might Be Put On Hold For Now at Computer Task Group, Incorporated (NASDAQ:CTG)

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Under the guidance of CEO Filip J. Gydé, Computer Task Group, Incorporated (NASDAQ:CTG) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 16 September 2021. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Computer Task Group

Comparing Computer Task Group, Incorporated's CEO Compensation With the industry

Our data indicates that Computer Task Group, Incorporated has a market capitalization of US$133m, and total annual CEO compensation was reported as US$1.8m for the year to December 2020. Notably, that's an increase of 28% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$465k.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$383k. Hence, we can conclude that Filip J. Gydé is remunerated higher than the industry median. What's more, Filip J. Gydé holds US$2.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20202019Proportion (2020)
Salary US$465k US$396k 26%
Other US$1.3m US$1.0m 74%
Total CompensationUS$1.8m US$1.4m100%

On an industry level, roughly 18% of total compensation represents salary and 82% is other remuneration. Computer Task Group pays out 26% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

NasdaqGS:CTG CEO Compensation September 10th 2021

Computer Task Group, Incorporated's Growth

Computer Task Group, Incorporated has seen its earnings per share (EPS) increase by 106% a year over the past three years. In the last year, its revenue is up 1.9%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Computer Task Group, Incorporated Been A Good Investment?

We think that the total shareholder return of 56%, over three years, would leave most Computer Task Group, Incorporated shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Computer Task Group (free visualization of insider trades).

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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