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A Quick Analysis On Global Payments' (NYSE:GPN) CEO Compensation

Simply Wall St
·4 min read

This article will reflect on the compensation paid to Jeff Sloan who has served as CEO of Global Payments Inc. (NYSE:GPN) since 2013. This analysis will also assess whether Global Payments pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Global Payments

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

Our data indicates that Global Payments Inc. has a market capitalization of US$52b, and total annual CEO compensation was reported as US$21m for the year to December 2019. We note that's an increase of 22% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.0m.

For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$11m. Hence, we can conclude that Jeff Sloan is remunerated higher than the industry median. Furthermore, Jeff Sloan directly owns US$84m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2019

2018

Proportion (2019)

Salary

US$1.0m

US$1.0m

5%

Other

US$20m

US$16m

95%

Total Compensation

US$21m

US$17m

100%

Speaking on an industry level, nearly 14% of total compensation represents salary, while the remainder of 86% is other remuneration. Global Payments has chosen to walk a path less trodden, opting to compensate its CEO with less of a traditional salary and more non-salary rewards over the last year. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

Global Payments Inc.'s Growth

Global Payments Inc.'s earnings per share (EPS) grew 16% per year over the last three years. Its revenue is up 72% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Global Payments Inc. Been A Good Investment?

Most shareholders would probably be pleased with Global Payments Inc. for providing a total return of 84% over three years. 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.

To Conclude...

Global Payments primarily uses non-salary benefits to reward its CEO. As previously discussed, Jeff is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But earnings growth and shareholder returns have been top-notch for the past three years. As a result of the excellent all-round performance of the company, we believe CEO compensation is fair. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Jeff's performance creates value for the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for Global Payments you should be aware of, and 1 of them is concerning.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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.