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Hawaiian Holdings, Inc. (NASDAQ:HA) has not performed well recently and CEO Peter Ingram will probably need to up their game. At the upcoming AGM on 19 May 2021, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.
How Does Total Compensation For Peter Ingram Compare With Other Companies In The Industry?
According to our data, Hawaiian Holdings, Inc. has a market capitalization of US$1.2b, and paid its CEO total annual compensation worth US$3.0m over the year to December 2020. That's a slight decrease of 6.8% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$498k.
In comparison with other companies in the industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$1.4m. Accordingly, our analysis reveals that Hawaiian Holdings, Inc. pays Peter Ingram north of the industry median. Furthermore, Peter Ingram directly owns US$6.3m worth of shares in the company, implying that they are deeply invested in the company's success.
Speaking on an industry level, nearly 19% of total compensation represents salary, while the remainder of 81% is other remuneration. It's interesting to note that Hawaiian Holdings allocates a smaller portion of compensation to salary in comparison to the broader 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 Hawaiian Holdings, Inc.'s Growth Numbers
Hawaiian Holdings, Inc. has reduced its earnings per share by 103% a year over the last three years. Its revenue is down 83% over the previous year.
The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Hawaiian Holdings, Inc. Been A Good Investment?
With a total shareholder return of -39% over three years, Hawaiian Holdings, Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 4 warning signs for Hawaiian Holdings (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the 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.
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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