Is Blackbaud, Inc.'s (NASDAQ:BLKB) CEO Overpaid Relative To Its Peers?
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In 2014 Mike Gianoni was appointed CEO of Blackbaud, Inc. (NASDAQ:BLKB). 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.
Check out our latest analysis for Blackbaud
How Does Mike Gianoni's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Blackbaud, Inc. has a market cap of US$3.8b, and is paying total annual CEO compensation of US$9.3m. (This figure is for the year to December 2018). We note that's an increase of 16% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$716k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.3m.
As you can see, Mike Gianoni is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Blackbaud, 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, below, how CEO compensation at Blackbaud has changed over time.
Is Blackbaud, Inc. Growing?
Blackbaud, Inc. has increased its earnings per share (EPS) by an average of 17% a year, over the last three years (using a line of best fit). Its revenue is up 6.5% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has Blackbaud, Inc. Been A Good Investment?
Blackbaud, Inc. has served shareholders reasonably well, with a total return of 23% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
We compared the total CEO remuneration paid by Blackbaud, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. Looking at the same time period, we think that the shareholder returns are respectable. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Blackbaud (free visualization of insider trades).
If you want to buy a stock that is better than Blackbaud, this free list of high return, low debt companies is a great place to look.
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 editorial-team@simplywallst.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.
