Todd Stevens became the CEO of California Resources Corporation (NYSE:CRC) in 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Todd Stevens's Compensation Compare With Similar Sized Companies?
Our data indicates that California Resources Corporation is worth US$1.4b, and total annual CEO compensation is US$7.7m. (This number is for the twelve months until December 2018). We note that's an increase of 59% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$867k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$3.6m.
As you can see, Todd Stevens is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean California Resources Corporation is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at California Resources has changed over time.
Is California Resources Corporation Growing?
California Resources Corporation has increased its earnings per share (EPS) by an average of 106% a year, over the last three years (using a line of best fit). It achieved revenue growth of 46% over the last year.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has California Resources Corporation Been A Good Investment?
Boasting a total shareholder return of 91% over three years, California Resources Corporation has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We compared the total CEO remuneration paid by California Resources Corporation, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling California Resources 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.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.