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Performance at Hudson Global, Inc. (NASDAQ:HSON) has been reasonably good and CEO Jeff Eberwein has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 19 May 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.
How Does Total Compensation For Jeff Eberwein Compare With Other Companies In The Industry?
Our data indicates that Hudson Global, Inc. has a market capitalization of US$49m, and total annual CEO compensation was reported as US$806k for the year to December 2020. That's just a smallish increase of 5.3% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$400k.
In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$708k. So it looks like Hudson Global compensates Jeff Eberwein in line with the median for the industry. Furthermore, Jeff Eberwein directly owns US$2.4m worth of shares in the company, implying that they are deeply invested in the company's success.
Talking in terms of the industry, salary represented approximately 23% of total compensation out of all the companies we analyzed, while other remuneration made up 77% of the pie. Hudson Global is paying a higher share of its remuneration through a salary in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Hudson Global, Inc.'s Growth
Hudson Global, Inc. has seen its earnings per share (EPS) increase by 73% a year over the past three years. In the last year, its revenue is up 9.9%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Hudson Global, Inc. Been A Good Investment?
Hudson Global, Inc. has generated a total shareholder return of 5.5% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Hudson Global that investors should look into moving forward.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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