Should You Worry About Carnival Corporation’s (NYSE:CCL) CEO Pay Check?
Arnold Donald has been the CEO of Carnival Corporation (NYSE:CCL) since 2013. This analysis aims first to contrast CEO compensation with other large companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Carnival
How Does Arnold Donald’s Compensation Compare With Similar Sized Companies?
Our data indicates that Carnival Corporation is worth US$37.9b, and total annual CEO compensation is US$13m. Notably, that’s an increase of 32% over the year before. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$11m.
That means Arnold Donald receives fairly typical remuneration for the CEO of a large company. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Carnival has changed over time.
Is Carnival Corporation Growing?
Over the last three years Carnival Corporation has grown its earnings per share (EPS) by an average of 22% per year. It achieved revenue growth of 8.7% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Carnival Corporation Been A Good Investment?
Carnival Corporation has not done too badly by shareholders, with a total return of 9.4%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
Arnold Donald is paid around the same as most CEOs of large companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So considering these factors, we think the CEO pay is probably quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Carnival Corporation shares (free trial).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
