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CEO Andres Reiner has done a decent job of delivering relatively good performance at PROS Holdings, Inc. (NYSE:PRO) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 12 May 2021. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
Comparing PROS Holdings, Inc.'s CEO Compensation With the industry
Our data indicates that PROS Holdings, Inc. has a market capitalization of US$1.9b, and total annual CEO compensation was reported as US$5.5m for the year to December 2020. Notably, that's a decrease of 14% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$540k.
In comparison with other companies in the industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$5.4m. So it looks like PROS Holdings compensates Andres Reiner in line with the median for the industry. Moreover, Andres Reiner also holds US$38m worth of PROS Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
On an industry level, around 11% of total compensation represents salary and 89% is other remuneration. PROS Holdings is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at PROS Holdings, Inc.'s Growth Numbers
PROS Holdings, Inc. has seen its earnings per share (EPS) increase by 12% a year over the past three years. In the last year, its revenue changed by just 0.8%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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?
With a total shareholder return of 20% over three years, PROS Holdings, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.
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.
Switching gears from PROS Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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.
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