Yahoo Finance Shareholders May Be More Conservative With Computer Task Group, Incorporated's (NASDAQ:CTG) CEO Compensation For Now
Performance at Computer Task Group, Incorporated (NASDAQ:CTG) has been reasonably good and CEO Filip J. Gydé has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 16 September 2021. However, some shareholders will still be cautious of paying the CEO excessively.
View our latest analysis for Computer Task Group
Comparing Computer Task Group, Incorporated's CEO Compensation With the industry
Our data indicates that Computer Task Group, Incorporated has a market capitalization of US$133m, and total annual CEO compensation was reported as US$1.8m for the year to December 2020. We note that's an increase of 28% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$465k.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$383k. This suggests that Filip J. Gydé is paid more than the median for the industry. Furthermore, Filip J. Gydé directly owns US$2.6m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2020 | 2019 | Proportion (2020) |
Salary | US$465k | US$396k | 26% |
Other | US$1.3m | US$1.0m | 74% |
Total Compensation | US$1.8m | US$1.4m | 100% |
On an industry level, roughly 18% of total compensation represents salary and 82% is other remuneration. Computer Task Group is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Computer Task Group, Incorporated's Growth Numbers
Over the past three years, Computer Task Group, Incorporated has seen its earnings per share (EPS) grow by 106% per year. Its revenue is up 1.9% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Computer Task Group, Incorporated Been A Good Investment?
Boasting a total shareholder return of 56% over three years, Computer Task Group, Incorporated 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...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
Shareholders may want to check for free if Computer Task Group insiders are buying or selling shares.
Switching gears from Computer Task Group, 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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