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Is Crane Co.’s (NYSE:CR) CEO Overpaid Relative To Its Peers?

Brandon Murphy

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Max Mitchell has been the CEO of Crane Co. (NYSE:CR) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Crane

How Does Max Mitchell’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Crane Co. has a market cap of US$4.9b, and is paying total annual CEO compensation of US$6.2m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$970k. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO compensation was US$6.4m.

So Max Mitchell is paid around the average of the companies we looked at. 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 a visual representation of the CEO compensation at Crane, below.

NYSE:CR CEO Compensation February 4th 19

Is Crane Co. Growing?

Crane Co. has increased its earnings per share (EPS) by an average of 1.2% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 20%.

This revenue growth could really point to a brighter future. And the modest growth in earnings per share isn’t bad, either. 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 Crane Co. Been A Good Investment?

Most shareholders would probably be pleased with Crane Co. for providing a total return of 80% over three years. 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.

In Summary…

Max Mitchell is paid around the same as most CEOs of similar size companies.

While the growth could be better, the shareholder returns are clearly good. So we can conclude that on this analysis the CEO compensation seems pretty sound. Shareholders may want to check for free if Crane insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.