Andres Reiner became the CEO of PROS Holdings, Inc. (NYSE:PRO) in 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Andres Reiner’s Compensation Compare With Similar Sized Companies?
According to our data, PROS Holdings, Inc. has a market capitalization of US$2.6b, and paid its CEO total annual compensation worth US$6.7m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$525k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.1m.
As you can see, Andres Reiner is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean PROS Holdings, Inc. 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 PROS Holdings has changed over time.
Is PROS Holdings, Inc. Growing?
Over the last three years PROS Holdings, Inc. has grown its earnings per share (EPS) by an average of 13% per year (using a line of best fit). Its revenue is up 21% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
Has PROS Holdings, Inc. Been A Good Investment?
Boasting a total shareholder return of 223% over three years, PROS Holdings, Inc. has done well by shareholders. 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 PROS Holdings, Inc., 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.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying PROS Holdings shares with their own money (free access).
If you want to buy a stock that is better than PROS Holdings, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.