Derek Dewan has been the CEO of GEE Group, Inc. (NYSEMKT:JOB) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Derek Dewan's Compensation Compare With Similar Sized Companies?
According to our data, GEE Group, Inc. has a market capitalization of US$15m, and pays its CEO total annual compensation worth US$1.6m. (This is based on the year to September 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$300k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$431k.
Thus we can conclude that Derek Dewan receives more in total compensation than the median of a group of companies in the same market, and of similar size to GEE Group, Inc.. However, this doesn't necessarily mean the pay is too high. 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 GEE Group, below.
Is GEE Group, Inc. Growing?
On average over the last three years, GEE Group, Inc. has shrunk earnings per share by 64% each year (measured with a line of best fit). Revenue was pretty flat on last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the flat revenue is seriously uninspiring. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has GEE Group, Inc. Been A Good Investment?
Since shareholders would have lost about 71% over three years, some GEE Group, Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by GEE Group, Inc., and compared it to remuneration at a group of similar sized companies. 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.
Over the same period, investors would have come away with nothing in the way of share price gains. This analysis suggests to us that the CEO is paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at GEE Group.
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.
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