Key Insights

• Clorox will host its Annual General Meeting on 19th of November
• Total pay for CEO Linda Rendle includes US$1.31m salary
• Total compensation is 68% above industry average
• Over the past three years, Clorox's EPS grew by 25% and over the past three years, the total loss to shareholders 20%

In the past three years, the share price of The Clorox Company (NYSE:CLX) has struggled to grow and now shareholders are sitting on a loss. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 19th of November. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Comparing The Clorox Company's CEO Compensation With The Industry

At the time of writing, our data shows that The Clorox Company has a market capitalization of US$13b, and reported total annual CEO compensation of US$13m for the year to June 2025. That's a modest increase of 5.1% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.3m.

In comparison with other companies in the American Household Products industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$7.9m. This suggests that Linda Rendle is paid more than the median for the industry. Furthermore, Linda Rendle directly owns US$3.3m worth of shares in the company.

On an industry level, roughly 16% of total compensation represents salary and 84% is other remuneration. It's interesting to note that Clorox allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at The Clorox Company's Growth Numbers

The Clorox Company's earnings per share (EPS) grew 25% per year over the last three years. Its revenue is down 9.3% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 The Clorox Company Been A Good Investment?

Given the total shareholder loss of 20% over three years, many shareholders in The Clorox Company are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business.

Arguably, business quality is much more important than CEO compensation levels.

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.