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This article will reflect on the compensation paid to Chuck Sykes who has served as CEO of Sykes Enterprises, Incorporated (NASDAQ:SYKE) since 2004. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Sykes Enterprises.
How Does Total Compensation For Chuck Sykes Compare With Other Companies In The Industry?
Our data indicates that Sykes Enterprises, Incorporated has a market capitalization of US$1.4b, and total annual CEO compensation was reported as US$4.4m for the year to December 2019. That's mostly flat as compared to the prior year's compensation. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$755k.
For comparison, other companies in the same industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$6.0m. From this we gather that Chuck Sykes is paid around the median for CEOs in the industry. Moreover, Chuck Sykes also holds US$15m worth of Sykes Enterprises 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. Sykes Enterprises pays out 17% of remuneration in the form of a salary, significantly higher than the industry average. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Sykes Enterprises, Incorporated's Growth
Sykes Enterprises, Incorporated has seen its earnings per share (EPS) increase by 5.7% a year over the past three years. Its revenue is up 2.8% over the last year.
We'd prefer higher revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Sykes Enterprises, Incorporated Been A Good Investment?
Sykes Enterprises, Incorporated has generated a total shareholder return of 17% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
As we touched on above, Sykes Enterprises, Incorporated 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. However, EPS and total shareholder return are solid yet uninspiring. Considering the steady performance, it's tough to call out CEO compensation as too high, but shareholders might want to see more robust growth metrics before agreeing to a future raise.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Sykes Enterprises that investors should be aware of in a dynamic business environment.
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.
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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