In 2001 Andrew Littlefair was appointed CEO of Clean Energy Fuels Corp. (NASDAQ:CLNE). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Andrew Littlefair's Compensation Compare With Similar Sized Companies?
Our data indicates that Clean Energy Fuels Corp. is worth US$409m, and total annual CEO compensation was reported as US$2.0m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$701k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.7m.
That means Andrew Littlefair receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Clean Energy Fuels has changed over time.
Is Clean Energy Fuels Corp. Growing?
Over the last three years Clean Energy Fuels Corp. has grown its earnings per share (EPS) by an average of 1.9% per year (using a line of best fit). It saw its revenue drop 5.5% over the last year.
I generally like to see a little revenue growth, but the improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. Shareholders might be interested in this free visualization of analyst forecasts.
Has Clean Energy Fuels Corp. Been A Good Investment?
Given the total loss of 40% over three years, many shareholders in Clean Energy Fuels Corp. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
Remuneration for Andrew Littlefair is close enough to the median pay for a CEO of a similar sized company .
The per share growth could be better, in our view. And we think the shareholder returns - over three years - have been underwhelming. So many would argue that the CEO is certainly not underpaid. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Clean Energy Fuels (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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.