Troy Clarke has been the CEO of Navistar International Corporation (NYSE:NAV) since 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Troy Clarke’s Compensation Compare With Similar Sized Companies?
According to our data, Navistar International Corporation has a market capitalization of US$3.7b, and pays its CEO total annual compensation worth US$6.9m. (This number is for the twelve months until October 2018). We note that’s an increase of 25% above last year. While we always look at total compensation first, we note that the salary component is less, at US$1.0m. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO compensation of that group was US$4.7m.
Thus we can conclude that Troy Clarke receives more in total compensation than the median of a group of companies in the same market, and of similar size to Navistar International Corporation. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Navistar International, below.
Is Navistar International Corporation Growing?
On average over the last three years, Navistar International Corporation has grown earnings per share (EPS) by 101% each year (using a line of best fit). Its revenue is up 20% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has Navistar International Corporation Been A Good Investment?
Boasting a total shareholder return of 222% over three years, Navistar International Corporation 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 total CEO remuneration at Navistar International Corporation with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if Navistar International 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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