Paul Taubman has been the CEO of PJT Partners Inc. (NYSE:PJT) since 2015. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Paul Taubman's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that PJT Partners Inc. has a market cap of US$1.8b, and reported total annual CEO compensation of US$4.2m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$1.0m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$3.8m.
So Paul Taubman is paid around the average of the companies we looked at. 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.
The graphic below shows how CEO compensation at Partners has changed from year to year.
Is PJT Partners Inc. Growing?
PJT Partners Inc. has increased its earnings per share (EPS) by an average of 59% a year, over the last three years (using a line of best fit). It achieved revenue growth of 8.3% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 PJT Partners Inc. Been A Good Investment?
Boasting a total shareholder return of 46% over three years, PJT Partners Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Remuneration for Paul Taubman is close enough to the median pay for a CEO of a similar sized company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Whatever your view on compensation, you might want to check if insiders are buying or selling Partners shares (free trial).
Important note: Partners may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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