ClearSign Technologies Corporation's (NASDAQ:CLIR) CEO Will Probably Find It Hard To See A Huge Raise This Year
Key Insights
- ClearSign Technologies will host its Annual General Meeting on 25th of July
- Total pay for CEO Jim Deller includes US$350.0k salary
- Total compensation is similar to the industry average
- ClearSign Technologies' EPS grew by 23% over the past three years while total shareholder loss over the past three years was 55%
In the past three years, the share price of ClearSign Technologies Corporation (NASDAQ:CLIR) has struggled to grow and now shareholders are sitting on a loss. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 25th of July. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.
View our latest analysis for ClearSign Technologies
How Does Total Compensation For Jim Deller Compare With Other Companies In The Industry?
Our data indicates that ClearSign Technologies Corporation has a market capitalization of US$26m, and total annual CEO compensation was reported as US$475k for the year to December 2024. That's a notable decrease of 9.9% on last year. In particular, the salary of US$350.0k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the American Machinery industry with market capitalizations under US$200m, the reported median total CEO compensation was US$467k. So it looks like ClearSign Technologies compensates Jim Deller in line with the median for the industry. Furthermore, Jim Deller directly owns US$93k worth of shares in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$350k | US$350k | 74% |
| Other | US$125k | US$177k | 26% |
| Total Compensation | US$475k | US$527k | 100% |
On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. According to our research, ClearSign Technologies has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at ClearSign Technologies Corporation's Growth Numbers
ClearSign Technologies Corporation has seen its earnings per share (EPS) increase by 23% a year over the past three years. It achieved revenue growth of 11% 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 decent revenue growth in the last year, suggesting the business is healthy and growing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has ClearSign Technologies Corporation Been A Good Investment?
Few ClearSign Technologies Corporation shareholders would feel satisfied with the return of -55% over three years. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for ClearSign Technologies that investors should think about before committing capital to this stock.
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.