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.
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.
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.
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.
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.
If you decide to trade Computer Task Group, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted
Valuation is complex, but we're helping make it simple.
Find out whether Computer Task Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free Analysis
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.