Bret Griess became the CEO of CSG Systems International, Inc. (NASDAQ:CSGS) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Bret Griess's Compensation Compare With Similar Sized Companies?
Our data indicates that CSG Systems International, Inc. is worth US$1.7b, and total annual CEO compensation was reported as US$6.5m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$700k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$4.1m.
As you can see, Bret Griess is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean CSG Systems International, 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 a visual representation of the CEO compensation at CSG Systems International, below.
Is CSG Systems International, Inc. Growing?
On average over the last three years, CSG Systems International, Inc. has shrunk earnings per share by 2.0% each year (measured with a line of best fit). Its revenue is up 16% over last year.
In the last three years the company has failed to grow earnings per share. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has CSG Systems International, Inc. Been A Good Investment?
CSG Systems International, Inc. has generated a total shareholder return of 33% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
We compared total CEO remuneration at CSG Systems International, Inc. 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.
We think many shareholders would be underwhelmed with the business growth over the last three years. And while shareholder returns have been respectable, they have hardly been superb. So we doubt many shareholders would consider the CEO pay to be particularly modest! So you may want to check if insiders are buying CSG Systems International shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 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.