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In 2016 Jerome Grisko was appointed CEO of CBIZ, Inc. (NYSE:CBZ). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Jerome Grisko's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that CBIZ, Inc. has a market cap of US$1.1b, and is paying total annual CEO compensation of US$4.1m. (This figure is for the year to December 2018). That's a notable increase of 40% on last year. We think total compensation is more important but we note that the CEO salary is lower, at US$791k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.3m.
It would therefore appear that CBIZ, Inc. pays Jerome Grisko more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at CBIZ has changed from year to year.
Is CBIZ, Inc. Growing?
Over the last three years CBIZ, Inc. has grown its earnings per share (EPS) by an average of 19% per year (using a line of best fit). It achieved revenue growth of 5.2% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has CBIZ, Inc. Been A Good Investment?
Boasting a total shareholder return of 91% over three years, CBIZ, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared the total CEO remuneration paid by CBIZ, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying CBIZ shares with their own money (free access).
Important note: CBIZ 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.
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.
If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.