Does Clean Energy Fuels Corp.'s (NASDAQ:CLNE) CEO Pay Reflect Performance?
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Andrew Littlefair became the CEO of Clean Energy Fuels Corp. (NASDAQ:CLNE) in 2001. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.
Check out our latest analysis for Clean Energy Fuels
How Does Andrew Littlefair's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Clean Energy Fuels Corp. has a market cap of US$524m, and is paying total annual CEO compensation of US$2.0m. (This figure is for the year to December 2018). That's less than last year. While we always look at total compensation first, we note that the salary component is less, at US$701k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.8m.
So Andrew Littlefair receives a similar amount to the median CEO pay, amongst 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, below, how CEO compensation at Clean Energy Fuels has changed over time.
Is Clean Energy Fuels Corp. Growing?
Clean Energy Fuels Corp. has increased its earnings per share (EPS) by an average of 25% a year, over the last three years (using a line of best fit). It saw its revenue drop -9.3% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. You might want to check this free visual report on analyst forecasts for future earnings.
Has Clean Energy Fuels Corp. Been A Good Investment?
With a three year total loss of 23%, Clean Energy Fuels Corp. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Remuneration for Andrew Littlefair is close enough to the median pay for a CEO of a similar sized company .
We like that the company is growing EPS, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. So you may want to check if insiders are buying Clean Energy Fuels shares with their own money (free access).
If you want to buy a stock that is better than Clean Energy Fuels, this free list of high return, low debt companies is a great place to look.
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 editorial-team@simplywallst.com. 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.
