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Here's What We Think About Agilysys, Inc.'s (NASDAQ:AGYS) CEO Pay

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Simply Wall St
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In 2017 Ramesh Srinivasan was appointed CEO of Agilysys, Inc. (NASDAQ:AGYS). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Agilysys

How Does Ramesh Srinivasan's Compensation Compare With Similar Sized Companies?

Our data indicates that Agilysys, Inc. is worth US$593m, and total annual CEO compensation was reported as US$1.1m for the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$600k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.7m.

Most shareholders would consider it a positive that Ramesh Srinivasan takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see a visual representation of the CEO compensation at Agilysys, below.

NasdaqGS:AGYS CEO Compensation, December 30th 2019
NasdaqGS:AGYS CEO Compensation, December 30th 2019

Is Agilysys, Inc. Growing?

On average over the last three years, Agilysys, Inc. has shrunk earnings per share by 5.5% each year (measured with a line of best fit). It achieved revenue growth of 15% over the last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. 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 Agilysys, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Agilysys, Inc. for providing a total return of 146% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

It looks like Agilysys, Inc. pays its CEO less than similar sized companies.

It's well worth noting that while Ramesh Srinivasan is paid less than most company leaders (at similar sized companies), there isn't much EPS growth. Having said that, returns to shareholders have been great. So, while it would be nice to have EPS growth, on our analysis the CEO compensation is not an issue. Shareholders may want to check for free if Agilysys insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.