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How Much Is World Fuel Services' (NYSE:INT) CEO Getting Paid?
This article will reflect on the compensation paid to Mike Kasbar who has served as CEO of World Fuel Services Corporation (NYSE:INT) since 2012. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for World Fuel Services.
View 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$1.6b, 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.
For comparison, other companies in the same industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$6.6m. From this we gather that Mike Kasbar is paid around the median for CEOs in the industry. Moreover, Mike Kasbar also holds US$18m worth of World Fuel Services stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| 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 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. World Fuel Services sets aside a smaller share of compensation for salary, in comparison to the overall 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 World Fuel Services Corporation's Growth Numbers
Over the past three years, World Fuel Services Corporation has seen its earnings per share (EPS) grow by 11% per year. In the last year, its revenue is down 23%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has World Fuel Services Corporation Been A Good Investment?
Since shareholders would have lost about 31% over three years, some World Fuel Services Corporation investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
In Summary...
As we noted earlier, World Fuel Services pays its CEO in line with similar-sized companies belonging to the same industry. At the same time, the company has logged negative shareholder returns over the last three years. But on the bright side, EPS growth is positive over the same period. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for World Fuel Services that investors should think about before committing capital to this stock.
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.
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Valuation is complex, but we're here to simplify it.
Discover if World Kinect might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisThis 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
About NYSE:WKC
World Kinect
Operates as an energy management company in the United States, rest of the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
Undervalued with moderate growth potential.
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