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Ron Stewart has been the CEO of PRGX Global, Inc. (NASDAQ:PRGX) since 2013. 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. 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.
How Does Ron Stewart's Compensation Compare With Similar Sized Companies?
Our data indicates that PRGX Global, Inc. is worth US$157m, and total annual CEO compensation is US$2.8m. (This is based on the year to December 2018). Notably, that's an increase of 15% over the year before. While we always look at total compensation first, we note that the salary component is less, at US$550k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.2m.
It would therefore appear that PRGX Global, Inc. pays Ron Stewart 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.
The graphic below shows how CEO compensation at PRGX Global has changed from year to year.
Is PRGX Global, Inc. Growing?
On average over the last three years, PRGX Global, Inc. has shrunk earnings per share by 7.8% each year (measured with a line of best fit). It achieved revenue growth of 5.5% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. 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 PRGX Global, Inc. Been A Good Investment?
PRGX Global, Inc. has served shareholders reasonably well, with a total return of 21% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
We compared total CEO remuneration at PRGX Global, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
And shareholder returns are decent but not great. So we think more research is needed, but we don't think the CEO underpaid. Whatever your view on compensation, you might want to check if insiders are buying or selling PRGX Global shares (free trial).
If you want to buy a stock that is better than PRGX Global, this free list of high return, low debt companies is a great place to look.
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 firstname.lastname@example.org. 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.