Stock Analysis

Why We Think Shareholders May Be Considering Bumping Up CorVel Corporation's (NASDAQ:CRVL) CEO Compensation

  •  Updated
NasdaqGS:CRVL
Source: Shutterstock

The impressive results at CorVel Corporation (NASDAQ:CRVL) recently will be great news for shareholders. At the upcoming AGM on 05 August 2021, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Check out our latest analysis for CorVel

Comparing CorVel Corporation's CEO Compensation With the industry

According to our data, CorVel Corporation has a market capitalization of US$2.5b, and paid its CEO total annual compensation worth US$1.5m over the year to March 2021. That's a fairly small increase of 5.6% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$562k.

On comparing similar companies from the same industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$4.8m. Accordingly, CorVel pays its CEO under the industry median. Moreover, Michael Combs also holds US$299k worth of CorVel stock directly under their own name.

Component20212020Proportion (2021)
Salary US$562k US$551k 37%
Other US$949k US$879k 63%
Total CompensationUS$1.5m US$1.4m100%

On an industry level, roughly 19% of total compensation represents salary and 81% is other remuneration. CorVel is paying a higher share of its remuneration through a salary in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
NasdaqGS:CRVL CEO Compensation July 30th 2021

A Look at CorVel Corporation's Growth Numbers

CorVel Corporation has seen its earnings per share (EPS) increase by 11% a year over the past three years. Its revenue is down 6.7% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has CorVel Corporation Been A Good Investment?

Most shareholders would probably be pleased with CorVel Corporation for providing a total return of 144% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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 1 warning sign for CorVel that investors should be aware of in a dynamic business environment.

Important note: CorVel 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.

If you’re looking to trade CorVel, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


Valuation is complex, but we're helping make it simple.

Find out whether CorVel is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

About NasdaqGS:CRVL

CorVel

CorVel Corporation provides workers’ compensation, auto, liability, and health solutions for employers, third party administrators, insurance companies, and government agencies to assist them in managing the medical costs and monitoring the quality of care associated with healthcare claims.

Flawless balance sheet with proven track record.