Bud Crumlish became the CEO of Computer Task Group, Incorporated (NASDAQ:CTG) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Bud Crumlish’s Compensation Compare With Similar Sized Companies?
According to our data, Computer Task Group, Incorporated has a market capitalization of US$58m, and pays its CEO total annual compensation worth US$677k. (This number is for the twelve months until December 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$410k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$416k.
As you can see, Bud Crumlish is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Computer Task Group, Incorporated is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Computer Task Group has changed over time.
Is Computer Task Group, Incorporated Growing?
Over the last three years Computer Task Group, Incorporated has grown its earnings per share (EPS) by an average of 57% per year (using a line of best fit). It achieved revenue growth of 19% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.
Has Computer Task Group, Incorporated Been A Good Investment?
With a three year total loss of 18%, Computer Task Group, Incorporated would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at Computer Task Group, Incorporated with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Computer Task Group.
Important note: Computer Task Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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