Ted Fernandez became the CEO of The Hackett Group, Inc. (NASDAQ:HCKT) in 1997. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Ted Fernandez's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that The Hackett Group, Inc. has a market cap of US$505m, and reported total annual CEO compensation of US$2.1m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$750k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.8m.
That means Ted Fernandez receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Hackett Group has changed over time.
Is The Hackett Group, Inc. Growing?
On average over the last three years, The Hackett Group, Inc. has grown earnings per share (EPS) by 12% each year (using a line of best fit). Its revenue is up 1.2% over last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.
Has The Hackett Group, Inc. Been A Good Investment?
With a total shareholder return of 12% over three years, The Hackett Group, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Ted Fernandez is paid around what is normal the leaders of comparable size companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So considering these factors, we think the CEO pay is probably quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Hackett Group (free visualization of insider trades).
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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