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Eric Brunngraber became the CEO of Cass Information Systems, Inc. (NASDAQ:CASS) in 2008, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Comparing Cass Information Systems, Inc.'s CEO Compensation With the industry
According to our data, Cass Information Systems, Inc. has a market capitalization of US$604m, and paid its CEO total annual compensation worth US$3.4m over the year to December 2019. That's a notable increase of 61% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$663k.
For comparison, other companies in the same industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$3.2m. This suggests that Cass Information Systems remunerates its CEO largely in line with the industry average. Moreover, Eric Brunngraber also holds US$4.4m worth of Cass Information Systems stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Talking in terms of the industry, salary represented approximately 14% of total compensation out of all the companies we analyzed, while other remuneration made up 86% of the pie. Cass Information Systems pays out 20% of remuneration in the form of a salary, significantly higher than the industry average. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Cass Information Systems, Inc.'s Growth Numbers
Cass Information Systems, Inc.'s earnings per share (EPS) grew 3.3% per year over the last three years. Its revenue is down 1.6% over the previous year.
We generally like to see a little revenue growth, but the modest EPSgrowth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Cass Information Systems, Inc. Been A Good Investment?
With a three year total loss of 10% for the shareholders, Cass Information Systems, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
As we touched on above, Cass Information Systems, Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But with negative shareholder returns and unimpressive EPS growth, shareholders will surely be disturbed. Although we wouldn't say CEO compensation is exceptionally high, it isn't very low either. Shareholders might want to see substantial improvements in returns before agreeing that Eric deserves a raise.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Cass Information Systems that investors should look into moving forward.
Switching gears from Cass Information Systems, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. 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.
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