Cheri Beranek became the CEO of Clearfield, Inc. (NASDAQ:CLFD) in 2007. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Cheri Beranek's Compensation Compare With Similar Sized Companies?
Our data indicates that Clearfield, Inc. is worth US$149m, and total annual CEO compensation is US$335k. (This is based on the year to September 2018). Notably, the salary of US$322k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$479k.
So Cheri Beranek is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Clearfield, below.
Is Clearfield, Inc. Growing?
Clearfield, Inc. has reduced its earnings per share by an average of 23% a year, over the last three years (measured with a line of best fit). Its revenue is up 14% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Clearfield, Inc. Been A Good Investment?
Given the total loss of 39% over three years, many shareholders in Clearfield, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Remuneration for Cheri Beranek is close enough to the median pay for a CEO of a similar sized company .
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Few would argue that it's wise for the company to pay any more, before returns improve. Whatever your view on compensation, you might want to check if insiders are buying or selling Clearfield shares (free trial).
Important note: Clearfield may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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