Increases to World Fuel Services Corporation's (NYSE:INT) CEO Compensation Might Cool off for now

Under the guidance of CEO Mike Kasbar, World Fuel Services Corporation (NYSE:INT) has performed reasonably well recently. As shareholders go into the upcoming AGM on 21 May 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for World Fuel Services

How Does Total Compensation For Mike Kasbar Compare With Other Companies In The Industry?

Our data indicates that World Fuel Services Corporation has a market capitalization of US$2.1b, and total annual CEO compensation was reported as US$6.5m for the year to December 2020. That's a notable decrease of 8.2% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$900k.

On comparing similar companies from the same industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$3.8m. Accordingly, our analysis reveals that World Fuel Services Corporation pays Mike Kasbar north of the industry median. What's more, Mike Kasbar holds US$26m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	US$900k	US$900k	14%
Other	US$5.6m	US$6.2m	86%
Total Compensation	US$6.5m	US$7.1m	100%

On an industry level, roughly 20% of total compensation represents salary and 80% is other remuneration. 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.

World Fuel Services Corporation's Growth

World Fuel Services Corporation has seen its earnings per share (EPS) increase by 65% a year over the past three years. Its revenue is down 49% over the previous year.

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?

Most shareholders would probably be pleased with World Fuel Services Corporation for providing a total return of 59% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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