Harsha Agadi has been the CEO of Crawford & Company (NYSE:CRD.B) since 2016. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Harsha Agadi's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Crawford & Company has a market cap of US$530m, and reported total annual CEO compensation of US$2.2m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$723k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.7m.
It would therefore appear that Crawford & Company pays Harsha Agadi more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Crawford has changed over time.
Is Crawford & Company Growing?
Crawford & Company 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 down 7.6% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.
Has Crawford & Company Been A Good Investment?
Given the total loss of 18% over three years, many shareholders in Crawford & Company are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount Crawford & Company pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Shareholders may want to check for free if Crawford insiders are buying or selling shares.
Important note: Crawford 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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