Jerome Grisko has been the CEO of CBIZ, Inc. (NYSE:CBZ) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for CBIZ.
How Does Total Compensation For Jerome Grisko Compare With Other Companies In The Industry?
At the time of writing, our data shows that CBIZ, Inc. has a market capitalization of US$1.3b, and reported total annual CEO compensation of US$3.8m for the year to December 2019. We note that's a small decrease of 6.0% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$866k.
In comparison with other companies in the industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$7.4m. In other words, CBIZ pays its CEO lower than the industry median. Moreover, Jerome Grisko also holds US$17m worth of CBIZ stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
On an industry level, roughly 20% of total compensation represents salary and 80% is other remuneration. CBIZ is paying a higher share of its remuneration through a salary in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at CBIZ, Inc.'s Growth Numbers
CBIZ, Inc. has seen its earnings per share (EPS) increase by 16% a year over the past three years. In the last year, its revenue is up 3.1%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has CBIZ, Inc. Been A Good Investment?
We think that the total shareholder return of 70%, over three years, would leave most CBIZ, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
As previously discussed, Jerome is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Since earnings growth is heading in a positive direction; many would agree with our assessment that the pay is modest. Given the strong history of shareholder returns, the shareholders are probably very happy with Jerome's performance.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for CBIZ that investors should look into moving forward.
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.
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