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Does GP Strategies Corporation's (NYSE:GPX) CEO Pay Reflect Performance?

Simply Wall St

In 2005 Scott Greenberg was appointed CEO of GP Strategies Corporation (NYSE:GPX). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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.

View our latest analysis for GP Strategies

How Does Scott Greenberg's Compensation Compare With Similar Sized Companies?

Our data indicates that GP Strategies Corporation is worth US$212m, and total annual CEO compensation was reported as US$1.1m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$560k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.2m.

So Scott Greenberg 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 GP Strategies has changed over time.

NYSE:GPX CEO Compensation, November 13th 2019

Is GP Strategies Corporation Growing?

GP Strategies Corporation has reduced its earnings per share by an average of 42% a year, over the last three years (measured with a line of best fit). Its revenue is up 9.1% over last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.

Has GP Strategies Corporation Been A Good Investment?

Given the total loss of 53% over three years, many shareholders in GP Strategies Corporation are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Scott Greenberg is paid around what is normal the leaders of comparable size companies.

Returns have been disappointing and the company is not growing its earnings per share. Suffice it to say, we don't think the CEO is underpaid! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling GP Strategies (free visualization of insider trades).

Important note: GP Strategies 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.

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.