In 2013 Ron Stewart was appointed CEO of PRGX Global Inc (NASDAQ:PRGX). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Ron Stewart’s Compensation Compare With Similar Sized Companies?
According to our data, PRGX Global Inc has a market capitalization of US$221m, and pays its CEO total annual compensation worth US$2.4m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$522k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO compensation of that group was US$941k.
As you can see, Ron Stewart is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean PRGX Global Inc is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at PRGX Global has changed over time.
Is PRGX Global Inc Growing?
Over the last three years PRGX Global Inc has grown its earnings per share (EPS) by an average of 15% per year. Its revenue is up 10% over last year.
This demonstrates that the company has been improving recently. A good result. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
You might want to check this free visual report on analyst forecasts for future earnings.
Has PRGX Global Inc Been A Good Investment?
Most shareholders would probably be pleased with PRGX Global Inc for providing a total return of 137% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We examined the amount PRGX Global Inc pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at PRGX Global.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.