How Should Investors Feel About Consumer Portfolio Services Inc’s (NASDAQ:CPSS) CEO Pay?
Charles Bradley became the CEO of Consumer Portfolio Services Inc (NASDAQ:CPSS) in 1992. 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 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.
Check out our latest analysis for Consumer Portfolio Services
How Does Charles Bradley’s Compensation Compare With Similar Sized Companies?
Our data indicates that Consumer Portfolio Services Inc is worth US$81m, and total annual CEO compensation is US$4.2m. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$995k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$292k.
It would therefore appear that Consumer Portfolio Services Inc pays Charles Bradley 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 better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Consumer Portfolio Services, below.
Is Consumer Portfolio Services Inc Growing?
On average over the last three years, Consumer Portfolio Services Inc has shrunk earnings per share by 60% each year. It saw its revenue drop -1.8% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Consumer Portfolio Services Inc Been A Good Investment?
With a three year total loss of 29%, Consumer Portfolio Services Inc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We compared the total CEO remuneration paid by Consumer Portfolio Services Inc, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Just as bad, share price gains for investors have failed to materialize, over the same period. In our opinion the CEO might be paid too generously! Shareholders may want to check for free if Consumer Portfolio Services insiders are buying or selling shares.
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
