Yahoo Finance Does Norwegian Cruise Line Holdings Ltd.’s (NYSE:NCLH) CEO Pay Matter?
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Frank Del Rio has been the CEO of Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Norwegian Cruise Line Holdings
How Does Frank Del Rio’s Compensation Compare With Similar Sized Companies?
Our data indicates that Norwegian Cruise Line Holdings Ltd. is worth US$11b, and total annual CEO compensation is US$10m. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$1.5m. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$11m. There aren’t very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
That means Frank Del Rio receives fairly typical remuneration for the CEO of a large company. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Norwegian Cruise Line Holdings has changed over time.
Is Norwegian Cruise Line Holdings Ltd. Growing?
On average over the last three years, Norwegian Cruise Line Holdings Ltd. has grown earnings per share (EPS) by 25% each year (using a line of best fit). Its revenue is up 12% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Norwegian Cruise Line Holdings Ltd. Been A Good Investment?
Norwegian Cruise Line Holdings Ltd. has generated a total shareholder return of 28% over three years, so most shareholders would be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary…
Frank Del Rio is paid around the same as most CEOs of large companies.
The company is growing EPS but shareholder returns have been sound but not amazing. So upon reflection one could argue that the CEO pay is quite reasonable. Shareholders may want to check for free if Norwegian Cruise Line Holdings insiders are buying or selling shares.
Important note: Norwegian Cruise Line Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
