Andres Reiner has been the CEO of PROS Holdings, Inc. (NYSE:PRO) since 2010. 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 - 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 Andres Reiner's Compensation Compare With Similar Sized Companies?
According to our data, PROS Holdings, Inc. has a market capitalization of US$2.9b, and pays its CEO total annual compensation worth US$6.7m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$525k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.1m.
Thus we can conclude that Andres Reiner receives more in total compensation than the median of a group of companies in the same market, and of similar size to PROS Holdings, Inc.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at PROS Holdings has changed over time.
Is PROS Holdings, Inc. Growing?
PROS Holdings, Inc. has increased its earnings per share (EPS) by an average of 13% a year, over the last three years (using a line of best fit). Its revenue is up 21% over last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has PROS Holdings, Inc. Been A Good Investment?
Most shareholders would probably be pleased with PROS Holdings, Inc. for providing a total return of 293% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared total CEO remuneration at PROS Holdings, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying PROS Holdings shares with their own money (free access).
Important note: PROS Holdings 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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