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In 2016 Yogesh Gupta was appointed CEO of Progress Software Corporation (NASDAQ:PRGS). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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 Yogesh Gupta’s Compensation Compare With Similar Sized Companies?
Our data indicates that Progress Software Corporation is worth US$2.0b, and total annual CEO compensation is US$4.8m. (This is based on the year to November 2018). That’s a notable increase of 43% on last year. We think total compensation is more important but we note that the CEO salary is lower, at US$575k. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$3.8m.
So Yogesh Gupta receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Progress Software has changed over time.
Is Progress Software Corporation Growing?
Progress Software Corporation has increased its earnings per share (EPS) by an average of 81% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -2.7%.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.
Has Progress Software Corporation Been A Good Investment?
I think that the total shareholder return of 90%, over three years, would leave most Progress Software Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Yogesh Gupta is close enough to the median pay for a CEO of a similar sized company .
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Progress Software shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.