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Should You Worry About World Fuel Services Corporation's (NYSE:INT) CEO Pay Cheque?

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Simply Wall St
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In 2012 Mike Kasbar was appointed CEO of World Fuel Services Corporation (NYSE:INT). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for World Fuel Services

How Does Mike Kasbar's Compensation Compare With Similar Sized Companies?

Our data indicates that World Fuel Services Corporation is worth US$2.8b, and total annual CEO compensation was reported as US$4.9m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$900k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.1m.

So Mike Kasbar receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at World Fuel Services has changed from year to year.

NYSE:INT CEO Compensation, November 5th 2019
NYSE:INT CEO Compensation, November 5th 2019

Is World Fuel Services Corporation Growing?

Over the last three years, World Fuel Services Corporation has not seen its earnings per share change much, though they have deteriorated slightly, according to a line of best fit. It saw its revenue drop 3.1% over the last year.

Unfortunately there is a complete lack of earnings per share improvement, over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.

Has World Fuel Services Corporation Been A Good Investment?

World Fuel Services Corporation has generated a total shareholder return of 6.8% over three years, so most shareholders wouldn't be too disappointed. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Remuneration for Mike Kasbar is close enough to the median pay for a CEO of a similar sized company .

The company isn't growing earnings per share, and nor have the total returns inspired us. We're not saying the CEO pay is too generous, but one might argue that the company should improve returns to shareholders before increasing it. Whatever your view on compensation, you might want to check if insiders are buying or selling World Fuel Services shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.