Steve Foots has been the CEO of Croda International Plc (LON:CRDA) since 2012. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Steve Foots’s Compensation Compare With Similar Sized Companies?
According to our data, Croda International Plc has a market capitalization of UK£6.0b, and pays its CEO total annual compensation worth UK£3m. We note that’s an increase of 43% above last year. We examined companies with market caps from UK£3.1b to UK£9.2b, and discovered that the median CEO compensation of that group was UK£3m.
As you can see, Steve Foots is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Croda International Plc is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Croda International has changed over time.
Is Croda International Plc Growing?
On average over the last three years, Croda International Plc has grown earnings per share (EPS) by 12% each year. In the last year, its revenue is up 2.0%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Croda International Plc Been A Good Investment?
Most shareholders would probably be pleased with Croda International Plc for providing a total return of 69% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared the total CEO remuneration paid by Croda International Plc, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Croda International Plc.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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.