Frank Martell has been the CEO of CoreLogic, Inc. (NYSE:CLGX) since 2017. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Frank Martell’s Compensation Compare With Similar Sized Companies?
According to our data, CoreLogic, Inc. has a market capitalization of US$3.8b, and paid its CEO total annual compensation worth US$5.6m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$779k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$4.9m.
So Frank Martell is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at CoreLogic, below.
Is CoreLogic, Inc. Growing?
CoreLogic, Inc. has reduced its earnings per share by an average of 9.7% a year, over the last three years (measured with a line of best fit). Its revenue is down 5.4% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has CoreLogic, Inc. Been A Good Investment?
CoreLogic, Inc. has generated a total shareholder return of 27% over three years, so most shareholders would be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Remuneration for Frank Martell is close enough to the median pay for a CEO of a similar sized company .
We feel that earnings per share have been a bit disappointing, but and we don’t think the total returns are amazing. We do not think the CEO pay is a problem, but one might argue that the company should improve returns to shareholders before increasing it. Whatever your view on compensation, you might want to check if insiders are buying or selling CoreLogic shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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