Yahoo Finance A Quick Analysis On Croda International's (LON:CRDA) CEO Salary
Steve Foots has been the CEO of Croda International Plc (LON:CRDA) since 2012, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Croda International pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for Croda International
Comparing Croda International Plc's CEO Compensation With the industry
Our data indicates that Croda International Plc has a market capitalization of UK£7.4b, and total annual CEO compensation was reported as UK£1.8m for the year to December 2019. That's a notable decrease of 46% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£662k.
On comparing similar companies in the industry with market capitalizations above UK£6.1b, we found that the median total CEO compensation was UK£3.4m. In other words, Croda International pays its CEO lower than the industry median. What's more, Steve Foots holds UK£9.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2019 | 2018 | Proportion (2019) |
Salary | UK£662k | UK£643k | 37% |
Other | UK£1.1m | UK£2.7m | 63% |
Total Compensation | UK£1.8m | UK£3.3m | 100% |
On an industry level, roughly 71% of total compensation represents salary and 29% is other remuneration. In Croda International's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Croda International Plc's Growth Numbers
Croda International Plc has reduced its earnings per share by 1.3% a year over the last three years. Its revenue is down 4.5% over the previous year.
A lack of EPS improvement is not good to see. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Croda International Plc Been A Good Investment?
Boasting a total shareholder return of 57% over three years, Croda International Plc has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
As we noted earlier, Croda International pays its CEO lower than the norm for similar-sized companies belonging to the same industry. And although the company is suffering from declining EPS growth over the past three years, shareholder returns remain strong. Although we'd like to see positive EPS growth, we'd argue the remuneration is modest, based on our observations.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Croda International that investors should be aware of in a dynamic business environment.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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