Key Insights

• CBIZ to hold its Annual General Meeting on 9th of May
• Total pay for CEO Jerry Grisko includes US$950.0k salary
• The overall pay is 42% below the industry average
• CBIZ's total shareholder return over the past three years was 111% while its EPS grew by 14% over the past three years

Shareholders will be pleased by the impressive results for CBIZ, Inc. (NYSE:CBZ) recently and CEO Jerry Grisko has played a key role. At the upcoming AGM on 9th of May, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

How Does Total Compensation For Jerry Grisko Compare With Other Companies In The Industry?

According to our data, CBIZ, Inc. has a market capitalization of US$3.6b, and paid its CEO total annual compensation worth US$5.2m over the year to December 2023. That's a fairly small increase of 6.8% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$950k.

In comparison with other companies in the American Professional Services industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$9.0m. Accordingly, CBIZ pays its CEO under the industry median. Moreover, Jerry Grisko also holds US$75m 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, around 15% of total compensation represents salary and 85% is other remuneration. According to our research, CBIZ has allocated a higher percentage of pay to salary in comparison to the wider 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 14% a year over the past three years. It achieved revenue growth of 11% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has CBIZ, Inc. Been A Good Investment?

Most shareholders would probably be pleased with CBIZ, Inc. for providing a total return of 111% 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...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for CBIZ that you should be aware of before investing.

Switching gears from CBIZ, 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.

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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.