In 2000 Ron Clarke was appointed CEO of FleetCor Technologies, Inc. (NYSE:FLT). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we'll look at a snap shot of the business growth. 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.
How Does Ron Clarke's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that FleetCor Technologies, Inc. has a market cap of US$25b, and is paying total annual CEO compensation of US$7.8m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.0m. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at FleetCor Technologies, below.
Is FleetCor Technologies, Inc. Growing?
On average over the last three years, FleetCor Technologies, Inc. has grown earnings per share (EPS) by 31% each year (using a line of best fit). It achieved revenue growth of 6.7% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has FleetCor Technologies, Inc. Been A Good Investment?
I think that the total shareholder return of 88%, over three years, would leave most FleetCor Technologies, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It appears that FleetCor Technologies, Inc. remunerates its CEO below most large companies. Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Ron Clarke deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. It would be even more positive if company insiders are buying shares. Shareholders may want to check for free if FleetCor Technologies insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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