It's Unlikely That Core Laboratories Inc.'s (NYSE:CLB) CEO Will See A Huge Pay Rise This Year

Key Insights

• Core Laboratories' Annual General Meeting to take place on 8th of May
• Salary of US$886.9k is part of CEO Larry Bruno's total remuneration
• The total compensation is 56% higher than the average for the industry
• Core Laboratories' three-year loss to shareholders was 50% while its EPS grew by 23% over the past three years

In the past three years, the share price of Core Laboratories Inc. (NYSE:CLB) 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. The AGM coming up on the 8th of May could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Core Laboratories

Comparing Core Laboratories Inc.'s CEO Compensation With The Industry

Our data indicates that Core Laboratories Inc. has a market capitalization of US$741m, and total annual CEO compensation was reported as US$8.0m for the year to December 2023. Notably, that's an increase of 25% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$887k.

For comparison, other companies in the American Energy Services industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$5.1m. Hence, we can conclude that Larry Bruno is remunerated higher than the industry median. Moreover, Larry Bruno also holds US$2.6m worth of Core Laboratories stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	US$887k	US$820k	11%
Other	US$7.1m	US$5.6m	89%
Total Compensation	US$8.0m	US$6.4m	100%

On an industry level, around 15% of total compensation represents salary and 85% is other remuneration. It's interesting to note that Core Laboratories 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 Core Laboratories Inc.'s Growth Numbers

Over the past three years, Core Laboratories Inc. has seen its earnings per share (EPS) grow by 23% per year. It achieved revenue growth of 1.6% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Core Laboratories Inc. Been A Good Investment?

Few Core Laboratories Inc. shareholders would feel satisfied with the return of -50% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. 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.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Core Laboratories that you should be aware of before investing.

Switching gears from Core Laboratories, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.