Yahoo Finance Does Crocs, Inc.'s (NASDAQ:CROX) CEO Pay Matter?
Andrew Rees has been the CEO of Crocs, Inc. (NASDAQ:CROX) since 2017. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Crocs
How Does Andrew Rees's Compensation Compare With Similar Sized Companies?
According to our data, Crocs, Inc. has a market capitalization of US$2.5b, and paid its CEO total annual compensation worth US$9.1m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$950k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$4.9m.
It would therefore appear that Crocs, Inc. pays Andrew Rees more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration 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 a visual representation of the CEO compensation at Crocs, below.
Is Crocs, Inc. Growing?
Crocs, Inc. has increased its earnings per share (EPS) by an average of 7.1% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 10%.
I would argue that the modest growth in revenue is a notable positive. And the improvement in earnings per share is modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. You might want to check this free visual report on analyst forecasts for future earnings.
Has Crocs, Inc. Been A Good Investment?
Boasting a total shareholder return of 407% over three years, Crocs, Inc. has done well by shareholders. 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...
We compared the total CEO remuneration paid by Crocs, Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if Crocs insiders are buying or selling shares.
If you want to buy a stock that is better than Crocs, this free list of high return, low debt companies is a great place to look.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
