It's Unlikely That CRA International, Inc.'s (NASDAQ:CRAI) CEO Will See A Huge Pay Rise This Year

Under the guidance of CEO Paul Maleh, CRA International, Inc. (NASDAQ:CRAI) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 28 July 2021. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for CRA International

Comparing CRA International, Inc.'s CEO Compensation With the industry

Our data indicates that CRA International, Inc. has a market capitalization of US$623m, and total annual CEO compensation was reported as US$3.5m for the year to January 2021. That's a modest increase of 4.4% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$850k.

For comparison, other companies in the same industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$2.3m. Accordingly, our analysis reveals that CRA International, Inc. pays Paul Maleh north of the industry median. Moreover, Paul Maleh also holds US$13m worth of CRA International stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2021	2019	Proportion (2021)
Salary	US$850k	US$785k	24%
Other	US$2.6m	US$2.5m	76%
Total Compensation	US$3.5m	US$3.3m	100%

Speaking on an industry level, nearly 22% of total compensation represents salary, while the remainder of 78% is other remuneration. According to our research, CRA International has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

CRA International, Inc.'s Growth

Over the past three years, CRA International, Inc. has seen its earnings per share (EPS) grow by 47% per year. Its revenue is up 12% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has CRA International, Inc. Been A Good Investment?

Most shareholders would probably be pleased with CRA International, Inc. for providing a total return of 65% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for CRA International that you should be aware of before investing.

Switching gears from CRA International, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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. 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.
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