Jeff Davis became the CEO of Perficient, Inc. (NASDAQ:PRFT) in 2009. 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 Jeff Davis's Compensation Compare With Similar Sized Companies?
Our data indicates that Perficient, Inc. is worth US$1.3b, and total annual CEO compensation is US$5.2m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$622k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$4.1m.
So Jeff Davis is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Perficient has changed over time.
Is Perficient, Inc. Growing?
Over the last three years Perficient, Inc. has grown its earnings per share (EPS) by an average of 11% per year (using a line of best fit). Its revenue is up 6.3% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has Perficient, Inc. Been A Good Investment?
Boasting a total shareholder return of 97% over three years, Perficient, 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.
Remuneration for Jeff Davis is close enough to the median pay for a CEO of a similar sized company .
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Perficient.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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