Is Navistar International Corporation (NYSE:NAV) Excessively Paying Its CEO?

Troy Clarke has been the CEO of Navistar International Corporation (NYSE:NAV) since 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Navistar International

How Does Troy Clarke’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Navistar International Corporation has a market cap of US$3.2b, and is paying total annual CEO compensation of US$5.1m. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, 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$4.9m.

So Troy Clarke receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at Navistar International has changed from year to year.

NYSE:NAV CEO Compensation December 5th 18
NYSE:NAV CEO Compensation December 5th 18

Is Navistar International Corporation Growing?

Navistar International Corporation has increased its earnings per share (EPS) by an average of 86% a year, over the last three years It achieved revenue growth of 19% over the last year.

This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Navistar International Corporation Been A Good Investment?

Most shareholders would probably be pleased with Navistar International Corporation for providing a total return of 161% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Troy Clarke is paid around what is normal the leaders of comparable size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Navistar International.

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.