Ron Clarke has been the CEO of FleetCor Technologies, Inc. (NYSE:FLT) since 2000. First, this article will compare CEO compensation with compensation at other large companies. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Ron Clarke’s Compensation Compare With Similar Sized Companies?
Our data indicates that FleetCor Technologies, Inc. is worth US$25b, and total annual CEO compensation is US$7.8m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.0m. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts – even though some are quite a bit bigger than others).
A first glance this seems like a real positive for shareholders, since Ron Clarke is paid less than the average total compensation paid by other large companies. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at FleetCor Technologies has changed over time.
Is FleetCor Technologies, Inc. Growing?
FleetCor Technologies, Inc. has increased its earnings per share (EPS) by an average of 31% a year, over the last three years (using a line of best fit). It achieved revenue growth of 6.7% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
Has FleetCor Technologies, Inc. Been A Good Investment?
Most shareholders would probably be pleased with FleetCor Technologies, Inc. for providing a total return of 91% 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.
FleetCor Technologies, Inc. is currently paying its CEO below what is normal for large companies. Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Ron Clarke deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling FleetCor Technologies (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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