Andrew Littlefair became the CEO of Clean Energy Fuels Corp. (NASDAQ:CLNE) in 2001. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Andrew Littlefair’s Compensation Compare With Similar Sized Companies?
According to our data, Clean Energy Fuels Corp. has a market capitalization of US$516m, and paid its CEO total annual compensation worth US$2.0m over the year to December 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$701k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.7m.
So Andrew Littlefair is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Clean Energy Fuels has changed from year to year.
Is Clean Energy Fuels Corp. Growing?
Clean Energy Fuels Corp. has increased its earnings per share (EPS) by an average of 1.9% a year, over the last three years (using a line of best fit). Its revenue is down 5.5% over last year.
I generally like to see a little revenue growth, but the improvement in EPS is good. It’s hard to reach a conclusion about business performance right now. This may be one to watch. It could be important to check this free visual depiction of what analysts expect for the future.
Has Clean Energy Fuels Corp. Been A Good Investment?
With a three year total loss of 8.7%, Clean Energy Fuels Corp. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Andrew Littlefair is paid around the same as most CEOs of similar size companies.
We would like to see somewhat stronger per share growth. And shareholder returns have been disappointing over the last three years. So many would argue that the CEO is certainly not underpaid. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Clean Energy Fuels.
Important note: Clean Energy Fuels may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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