It Looks Like Shareholders Would Probably Approve Crane Company's (NYSE:CR) CEO Compensation Package

Key Insights

• Crane's Annual General Meeting to take place on 28th of April
• Salary of US$1.20m is part of CEO Max Mitchell's total remuneration
• The overall pay is comparable to the industry average
• Crane's EPS grew by 11% over the past three years while total shareholder return over the past three years was 108%

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The performance at Crane Company (NYSE:CR) has been quite strong recently and CEO Max Mitchell has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 28th of April. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

See our latest analysis for Crane

Comparing Crane Company's CEO Compensation With The Industry

Our data indicates that Crane Company has a market capitalization of US$8.2b, and total annual CEO compensation was reported as US$9.6m for the year to December 2024. We note that's a small decrease of 4.6% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.2m.

For comparison, other companies in the American Machinery industry with market capitalizations ranging between US$4.0b and US$12b had a median total CEO compensation of US$9.2m. From this we gather that Max Mitchell is paid around the median for CEOs in the industry. What's more, Max Mitchell holds US$54m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	US$1.2m	US$1.2m	12%
Other	US$8.4m	US$8.9m	88%
Total Compensation	US$9.6m	US$10m	100%

On an industry level, around 15% of total compensation represents salary and 85% is other remuneration. It's interesting to note that Crane 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.

A Look at Crane Company's Growth Numbers

Crane Company has seen its earnings per share (EPS) increase by 11% a year over the past three years. It achieved revenue growth of 14% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Crane Company Been A Good Investment?

We think that the total shareholder return of 108%, over three years, would leave most Crane Company shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

Shareholders may want to check for free if Crane insiders are buying or selling shares.

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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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.