Yahoo Finance We Think Some Shareholders May Hesitate To Increase Clearwater Paper Corporation's (NYSE:CLW) CEO Compensation
Key Insights
Clearwater Paper will host its Annual General Meeting on 9th of May
Salary of US$940.4k is part of CEO Arsen Kitch's total remuneration
Total compensation is 1,578% above industry average
Clearwater Paper's total shareholder return over the past three years was 45% while its EPS grew by 8.4% over the past three years
Performance at Clearwater Paper Corporation (NYSE:CLW) has been reasonably good and CEO Arsen Kitch has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 9th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
See our latest analysis for Clearwater Paper
Comparing Clearwater Paper Corporation's CEO Compensation With The Industry
According to our data, Clearwater Paper Corporation has a market capitalization of US$742m, and paid its CEO total annual compensation worth US$5.3m over the year to December 2023. Notably, that's an increase of 13% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$940k.
On comparing similar companies from the the US Forestry industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$315k. Accordingly, our analysis reveals that Clearwater Paper Corporation pays Arsen Kitch north of the industry median. What's more, Arsen Kitch holds US$7.9m 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$940k | US$888k | 18% |
Other | US$4.3m | US$3.8m | 82% |
Total Compensation | US$5.3m | US$4.7m | 100% |
On an industry level, around 20% of total compensation represents salary and 80% is other remuneration. Clearwater Paper pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Clearwater Paper Corporation's Growth Numbers
Clearwater Paper Corporation's earnings per share (EPS) grew 8.4% per year over the last three years. In the last year, its revenue is down 3.0%.
We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Clearwater Paper Corporation Been A Good Investment?
We think that the total shareholder return of 45%, over three years, would leave most Clearwater Paper Corporation shareholders smiling. 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...
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 can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Clearwater Paper that investors should look into moving forward.
Switching gears from Clearwater Paper, 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. 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.
