Yahoo Finance Should You Be Pleased About The CEO Pay At CGI Inc.'s (TSE:GIB.A)
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In 2016 George Schindler was appointed CEO of CGI Inc. (TSE:GIB.A). First, this article will compare CEO compensation with compensation at other large companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for CGI
How Does George Schindler's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that CGI Inc. has a market cap of CA$25b, and is paying total annual CEO compensation of CA$8.6m. (This number is for the twelve months until September 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$1.2m. When we examined a group of companies with market caps over CA$11b, we found that their median CEO total compensation was CA$8.5m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
That means George Schindler receives fairly typical remuneration for the CEO of a large company. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at CGI has changed from year to year.
Is CGI Inc. Growing?
Over the last three years CGI Inc. has grown its earnings per share (EPS) by an average of 6.7% per year (using a line of best fit). In the last year, its revenue is up 6.1%.
I'd prefer higher revenue growth, but I'm happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. You might want to check this free visual report on analyst forecasts for future earnings.
Has CGI Inc. Been A Good Investment?
Most shareholders would probably be pleased with CGI Inc. for providing a total return of 49% over three years. 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.
In Summary...
George Schindler is paid around what is normal the leaders of larger companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling CGI shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
