Stock Analysis

It's Unlikely That Crown Holdings, Inc.'s (NYSE:CCK) CEO Will See A Huge Pay Rise This Year

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CEO Tim Donahue has done a decent job of delivering relatively good performance at Crown Holdings, Inc. (NYSE:CCK) recently. As shareholders go into the upcoming AGM on 22 April 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Crown Holdings

Comparing Crown Holdings, Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that Crown Holdings, Inc. has a market capitalization of US$14b, and reported total annual CEO compensation of US$18m for the year to December 2020. Notably, that's an increase of 36% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.2m.

On comparing similar companies in the industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$10m. This suggests that Tim Donahue is paid more than the median for the industry. What's more, Tim Donahue holds US$68m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20202019Proportion (2020)
Salary US$1.2m US$1.1m 7%
Other US$16m US$12m 93%
Total CompensationUS$18m US$13m100%

On an industry level, around 12% of total compensation represents salary and 88% is other remuneration. Crown Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

NYSE:CCK CEO Compensation April 15th 2021

A Look at Crown Holdings, Inc.'s Growth Numbers

Crown Holdings, Inc.'s earnings per share (EPS) grew 22% per year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Crown Holdings, Inc. Been A Good Investment?

We think that the total shareholder return of 104%, over three years, would leave most Crown Holdings, Inc. shareholders smiling. 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.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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 CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Crown Holdings that you should be aware of before investing.

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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