Key Insights

• Global Payments will host its Annual General Meeting on 25th of April
• Total pay for CEO Cameron Bready includes US$958.3k salary
• The overall pay is 53% above the industry average
• Over the past three years, Global Payments' EPS grew by 26% and over the past three years, the total loss to shareholders 42%

The underwhelming share price performance of Global Payments Inc. (NYSE:GPN) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 25th of April could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Comparing Global Payments Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Global Payments Inc. has a market capitalization of US$31b, and reported total annual CEO compensation of US$16m for the year to December 2023. We note that's an increase of 81% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$958k.

For comparison, other companies in the American Diversified Financial industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$10m. Accordingly, our analysis reveals that Global Payments Inc. pays Cameron Bready north of the industry median. What's more, Cameron Bready holds US$30m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. In Global Payments' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Global Payments Inc.'s Growth Numbers

Global Payments Inc.'s earnings per share (EPS) grew 26% per year over the last three years. It achieved revenue growth of 7.6% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. 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 Global Payments Inc. Been A Good Investment?

Few Global Payments Inc. shareholders would feel satisfied with the return of -42% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for Global Payments (1 doesn't sit too well with us!) that you should be aware of before investing here.

Switching gears from Global Payments, 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.