In 2013 Troy Clarke was appointed CEO of Navistar International Corporation (NYSE:NAV). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Troy Clarke’s Compensation Compare With Similar Sized Companies?
According to our data, Navistar International Corporation has a market capitalization of US$3.0b, and pays its CEO total annual compensation worth US$5.1m. That’s a fairly small increase of 3.4% on year before. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$5.0m.
That means Troy Clarke receives fairly typical remuneration for the CEO of a company that size. 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 Navistar International, below.
Is Navistar International Corporation Growing?
Navistar International Corporation has increased its earnings per share (EPS) by an average of 86% a year, over the last three years It achieved revenue growth of 19% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Navistar International Corporation Been A Good Investment?
I think that the total shareholder return of 148%, over three years, would leave most Navistar International Corporation shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
Troy Clarke is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Navistar International Corporation shares with their own money (free access).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.