How Much Did CGI's (TSE:GIB.A) CEO Pocket Last Year?
George Schindler has been the CEO of CGI Inc. (TSE:GIB.A) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for CGI.
See our latest analysis for CGI
Comparing CGI Inc.'s CEO Compensation With the industry
At the time of writing, our data shows that CGI Inc. has a market capitalization of CA$25b, and reported total annual CEO compensation of CA$10m for the year to September 2019. That's a notable increase of 21% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$1.4m.
On comparing similar companies in the industry with market capitalizations above CA$11b, we found that the median total CEO compensation was CA$14m. This suggests that CGI remunerates its CEO largely in line with the industry average. Furthermore, George Schindler directly owns CA$2.9m worth of shares in the company.
Component | 2019 | 2018 | Proportion (2019) |
Salary | CA$1.4m | CA$1.2m | 14% |
Other | CA$9.0m | CA$7.4m | 86% |
Total Compensation | CA$10m | CA$8.6m | 100% |
On an industry level, around 66% of total compensation represents salary and 34% is other remuneration. CGI sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at CGI Inc.'s Growth Numbers
CGI Inc. has seen its earnings per share (EPS) increase by 7.0% a year over the past three years. In the last year, its revenue is up 2.1%.
We're not particularly impressed by the revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has CGI Inc. Been A Good Investment?
Boasting a total shareholder return of 47% over three years, CGI Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
As we touched on above, CGI Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But the business isn't reporting great numbers in terms of earnings growth. On the other hand, shareholder returns over the same period have been very healthy. There is room for improved company performance, but we don't see the CEO compensation as a big issue here.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for CGI that investors should think about before committing capital to this stock.
Switching gears from CGI, 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.
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