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What We Learned About Information Services' (TSE:ISV) CEO Compensation

Simply Wall St

Jeff Stusek became the CEO of Information Services Corporation (TSE:ISV) in 2008, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Information Services

How Does Total Compensation For Jeff Stusek Compare With Other Companies In The Industry?

Our data indicates that Information Services Corporation has a market capitalization of CA$315m, and total annual CEO compensation was reported as CA$992k for the year to December 2019. Notably, that's an increase of 13% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$384k.

In comparison with other companies in the industry with market capitalizations ranging from CA$131m to CA$525m, the reported median CEO total compensation was CA$992k. This suggests that Information Services remunerates its CEO largely in line with the industry average. Moreover, Jeff Stusek also holds CA$92k worth of Information Services stock directly under their own name.

Component

2019

2018

Proportion (2019)

Salary

CA$384k

CA$350k

39%

Other

CA$608k

CA$526k

61%

Total Compensation

CA$992k

CA$876k

100%

Speaking on an industry level, salary and non-salary portions, both make up 50% each of the total remuneration. It's interesting to note that Information Services allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
ceo-compensation

Information Services Corporation's Growth

Information Services Corporation has seen its earnings per share (EPS) increase by 10% a year over the past three years. In the last year, its revenue is up 5.3%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Information Services Corporation Been A Good Investment?

Information Services Corporation has generated a total shareholder return of 21% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

As we noted earlier, Information Services pays its CEO in line with similar-sized companies belonging to the same industry. But EPS growth for the company has been strong over the last three years, though shareholder returns in comparison haven't been as impressive. As a result of these considerations, we would suggest the compensation is reasonable, but looking ahead shareholders will likely want to see healthier returns.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Information Services that investors should think about before committing capital to this stock.

Switching gears from Information Services, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.