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Here's What We Think About PROS Holdings' (NYSE:PRO) CEO Pay

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Andres Reiner has been the CEO of PROS Holdings, Inc. (NYSE:PRO) since 2010, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether PROS Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for PROS Holdings

Comparing PROS Holdings, Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that PROS Holdings, Inc. has a market capitalization of US$1.7b, and reported total annual CEO compensation of US$6.3m for the year to December 2019. That's a slight decrease of 5.9% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$525k.

On examining similar-sized companies in the industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was US$4.6m. Hence, we can conclude that Andres Reiner is remunerated higher than the industry median. What's more, Andres Reiner holds US$32m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2019

2018

Proportion (2019)

Salary

US$525k

US$525k

8%

Other

US$5.8m

US$6.2m

92%

Total Compensation

US$6.3m

US$6.7m

100%

On an industry level, roughly 12% of total compensation represents salary and 88% is other remuneration. PROS Holdings pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
ceo-compensation

A Look at PROS Holdings, Inc.'s Growth Numbers

PROS Holdings, Inc. has seen its earnings per share (EPS) increase by 15% a year over the past three years. Its revenue is up 17% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has PROS Holdings, Inc. Been A Good Investment?

We think that the total shareholder return of 57%, over three years, would leave most PROS Holdings, Inc. shareholders smiling. 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.

To Conclude...

As we touched on above, PROS Holdings, Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But EPS growth and shareholder returns have been top-notch for the past three years. So, in acknowledgment of the overall excellent performance, we believe CEO compensation is appropriate. And given most shareholders are probably very happy with recent returns, they might even think that Andres deserves a raise!

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for PROS Holdings that investors should be aware of in a dynamic business environment.

Important note: PROS Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.