In 2014 Steve Gunby was appointed CEO of FTI Consulting, Inc. (NYSE:FCN). 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 process should give us an idea about how appropriately the CEO is paid.
How Does Steve Gunby's Compensation Compare With Similar Sized Companies?
Our data indicates that FTI Consulting, Inc. is worth US$3.8b, and total annual CEO compensation is US$6.1m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$1.0m. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.1m.
That means Steve Gunby receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at FTI Consulting, below.
Is FTI Consulting, Inc. Growing?
Over the last three years FTI Consulting, Inc. has grown its earnings per share (EPS) by an average of 44% per year (using a line of best fit). Its revenue is up 13% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has FTI Consulting, Inc. Been A Good Investment?
Most shareholders would probably be pleased with FTI Consulting, Inc. for providing a total return of 138% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Steve Gunby is paid around what is normal the leaders of comparable size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying FTI Consulting shares with their own money (free access).
Important note: FTI Consulting 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.
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