The CEO of Clarus Corporation (NASDAQ:CLAR) is Warren Kanders. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Warren Kanders's Compensation Compare With Similar Sized Companies?
According to our data, Clarus Corporation has a market capitalization of US$398m, and paid its CEO total annual compensation worth US$2.0m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$351k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. 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.
So Warren Kanders is paid around the average of 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 a visual representation of the CEO compensation at Clarus, below.
Is Clarus Corporation Growing?
On average over the last three years, Clarus Corporation has grown earnings per share (EPS) by 125% each year (using a line of best fit). It achieved revenue growth of 8.8% over the last year.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has Clarus Corporation Been A Good Investment?
Most shareholders would probably be pleased with Clarus Corporation for providing a total return of 140% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Warren Kanders is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Clarus (free visualization of insider trades).
If you want to buy a stock that is better than Clarus, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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