Yahoo Finance Is Computer Task Group, Incorporated’s (NASDAQ:CTG) CEO Overpaid Relative To Its Peers?
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Bud Crumlish became the CEO of Computer Task Group, Incorporated (NASDAQ:CTG) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Computer Task Group
How Does Bud Crumlish’s Compensation Compare With Similar Sized Companies?
According to our data, Computer Task Group, Incorporated has a market capitalization of US$60m, and pays its CEO total annual compensation worth US$677k. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$410k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$300k.
Thus we can conclude that Bud Crumlish receives more in total compensation than the median of a group of companies in the same market, and of similar size to Computer Task Group, Incorporated. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Computer Task Group has changed over time.
Is Computer Task Group, Incorporated Growing?
Over the last three years Computer Task Group, Incorporated has grown its earnings per share (EPS) by an average of 31% per year (using a line of best fit). Its revenue is up 12% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Computer Task Group, Incorporated Been A Good Investment?
Given the total loss of 19% over three years, many shareholders in Computer Task Group, Incorporated are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
We examined the amount Computer Task Group, Incorporated pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling Computer Task Group shares (free trial).
Important note: Computer Task Group 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.
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 editorial-team@simplywallst.com.
