Yahoo Finance How Does World Fuel Services' (NYSE:INT) CEO Salary Compare to Peers?
Mike Kasbar has been the CEO of World Fuel Services Corporation (NYSE:INT) since 2012, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether World Fuel Services pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for World Fuel Services
How Does Total Compensation For Mike Kasbar Compare With Other Companies In The Industry?
At the time of writing, our data shows that World Fuel Services Corporation has a market capitalization of US$2.0b, and reported total annual CEO compensation of US$7.1m for the year to December 2019. We note that's an increase of 45% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$900k.
On examining similar-sized companies in the industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was US$6.6m. This suggests that World Fuel Services remunerates its CEO largely in line with the industry average. Furthermore, Mike Kasbar directly owns US$22m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$900k | US$900k | 13% |
Other | US$6.2m | US$4.0m | 87% |
Total Compensation | US$7.1m | US$4.9m | 100% |
Talking in terms of the industry, salary represented approximately 16% of total compensation out of all the companies we analyzed, while other remuneration made up 84% of the pie. World Fuel Services pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at World Fuel Services Corporation's Growth Numbers
World Fuel Services Corporation's earnings per share (EPS) grew 93% per year over the last three years. In the last year, its revenue is down 33%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 World Fuel Services Corporation Been A Good Investment?
World Fuel Services Corporation has generated a total shareholder return of 16% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
As we touched on above, World Fuel Services Corporation is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But EPS growth over the last three years has been impressive, although the same cannot be said for shareholder returns. Considering overall performance, we'd say the compensation is fair, although stockholders will want to see higher returns moving forward.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for World Fuel Services you should be aware of, and 1 of them shouldn't be ignored.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
This article by Simply Wall St is general in nature. 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.
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