Yahoo Finance We Think Crocs, Inc.'s (NASDAQ:CROX) CEO Compensation Looks Fair
Key Insights
Crocs will host its Annual General Meeting on 4th of June
Total pay for CEO Andrew Rees includes US$1.10m salary
The overall pay is comparable to the industry average
Crocs' EPS grew by 30% over the past three years while total shareholder return over the past three years was 50%
We have been pretty impressed with the performance at Crocs, Inc. (NASDAQ:CROX) recently and CEO Andrew Rees deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 4th of June. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
View our latest analysis for Crocs
Comparing Crocs, Inc.'s CEO Compensation With The Industry
Our data indicates that Crocs, Inc. has a market capitalization of US$9.0b, and total annual CEO compensation was reported as US$11m for the year to December 2023. That's just a smallish increase of 7.3% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.1m.
On comparing similar companies from the American Luxury industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$14m. So it looks like Crocs compensates Andrew Rees in line with the median for the industry. Moreover, Andrew Rees also holds US$123m worth of Crocs stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.1m | US$1.1m | 10% |
Other | US$9.6m | US$8.8m | 90% |
Total Compensation | US$11m | US$9.9m | 100% |
Speaking on an industry level, nearly 25% of total compensation represents salary, while the remainder of 75% is other remuneration. It's interesting to note that Crocs allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Crocs, Inc.'s Growth
Crocs, Inc. has seen its earnings per share (EPS) increase by 30% a year over the past three years. It achieved revenue growth of 6.3% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Crocs, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Crocs, Inc. for providing a total return of 50% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Crocs that investors should look into moving forward.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
