Crocs, Inc.'s (NASDAQ:CROX) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• Crocs will host its Annual General Meeting on 4th of June
• Salary of US$1.10m is part of CEO Andrew Rees's total remuneration
• The overall pay is comparable to the industry average
• Crocs' EPS grew by 30% over the past three years while total shareholder return over the past three years was 50%

We have been pretty impressed with the performance at Crocs, Inc. (NASDAQ:CROX) recently and CEO Andrew Rees deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 4th of June. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for Crocs

How Does Total Compensation For Andrew Rees Compare With Other Companies In The Industry?

According to our data, Crocs, Inc. has a market capitalization of US$9.0b, and paid its CEO total annual compensation worth US$11m over the year to December 2023. That's a modest increase of 7.3% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.1m.

On examining similar-sized companies in the American Luxury industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$14m. From this we gather that Andrew Rees is paid around the median for CEOs in the industry. What's more, Andrew Rees holds US$123m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$1.1m	US$1.1m	10%
Other	US$9.6m	US$8.8m	90%
Total Compensation	US$11m	US$9.9m	100%

Speaking on an industry level, nearly 25% of total compensation represents salary, while the remainder of 75% is other remuneration. Crocs sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Crocs, Inc.'s Growth

Crocs, Inc. has seen its earnings per share (EPS) increase by 30% a year over the past three years. In the last year, its revenue is up 6.3%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Crocs, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Crocs, Inc. for providing a total return of 50% 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...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

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. We've identified 2 warning signs for Crocs that investors should be aware of in a dynamic business environment.

Important note: Crocs is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.