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Gene Hall became the CEO of Gartner, Inc. (NYSE:IT) in 2004, 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 look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Gartner.
How Does Total Compensation For Gene Hall Compare With Other Companies In The Industry?
According to our data, Gartner, Inc. has a market capitalization of US$14b, and paid its CEO total annual compensation worth US$12m over the year to December 2019. That's just a smallish increase of 4.0% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$908k.
In comparison with other companies in the industry with market capitalizations over US$8.0b , the reported median total CEO compensation was US$11m. From this we gather that Gene Hall is paid around the median for CEOs in the industry. Furthermore, Gene Hall directly owns US$187m worth of shares in the company, implying that they are deeply invested in the company's success.
On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. Gartner sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Gartner, Inc.'s Growth Numbers
Gartner, Inc. has seen its earnings per share (EPS) increase by 67% a year over the past three years. Its revenue is up 1.4% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Gartner, Inc. Been A Good Investment?
Gartner, Inc. has generated a total shareholder return of 32% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
As we touched on above, Gartner, 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. However, it's admirable that over the last three years, EPS growth for the company has been impressive, though the same can't be said for investor returns. Considering overall performance, we'd say the compensation is fair, although stockholders will want to see higher returns moving forward.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Gartner that you should be aware of before investing.
Switching gears from Gartner, 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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