Key Insights

• Clearwater Paper to hold 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
• Over the past three years, Clearwater Paper's EPS grew by 8.4% and over the past three years, the total shareholder return was 45%

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. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 9th of May. However, some shareholders will still be cautious of paying the CEO excessively.

How Does Total Compensation For Arsen Kitch Compare With Other Companies In The Industry?

Our data indicates that Clearwater Paper Corporation has a market capitalization of US$742m, and total annual CEO compensation was reported as US$5.3m for 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.

In comparison with other companies in the the US Forestry industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$315k. This suggests that Arsen Kitch is paid more than the median for the industry. 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.

Talking in terms of the industry, salary represented approximately 20% of total compensation out of all the companies we analyzed, while other remuneration made up 80% of the pie. In Clearwater Paper's case, non-salary compensation represents a greater slice of total remuneration, in comparison 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.

Clearwater Paper Corporation's Growth

Clearwater Paper Corporation has seen its earnings per share (EPS) increase by 8.4% a year over the past three years. Its revenue is down 3.0% over the previous year.

We would prefer it if there was revenue growth, but the modest improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Clearwater Paper Corporation Been A Good Investment?

Boasting a total shareholder return of 45% over three years, Clearwater Paper Corporation has done well by shareholders. 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 up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Clearwater Paper that you should be aware of before investing.

Important note: Clearwater Paper 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.