Key Insights

• World Kinect's Annual General Meeting to take place on 6th of June
• CEO Mike Kasbar's total compensation includes salary of US$1.00m
• The total compensation is similar to the average for the industry
• Over the past three years, World Kinect's EPS fell by 11% and over the past three years, the total loss to shareholders 19%

The results at World Kinect Corporation (NYSE:WKC) have been quite disappointing recently and CEO Mike Kasbar bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 6th of June. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

Comparing World Kinect Corporation's CEO Compensation With The Industry

At the time of writing, our data shows that World Kinect Corporation has a market capitalization of US$1.5b, and reported total annual CEO compensation of US$6.8m for the year to December 2023. Notably, that's a decrease of 55% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.0m.

On examining similar-sized companies in the American Oil and Gas industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was US$5.9m. So it looks like World Kinect compensates Mike Kasbar in line with the median for the industry. What's more, Mike Kasbar holds US$24m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 14% of total compensation represents salary and 86% is other remuneration. Our data reveals that World Kinect allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

World Kinect Corporation's Growth

Over the last three years, World Kinect Corporation has shrunk its earnings per share by 11% per year. It saw its revenue drop 22% over the last year.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 World Kinect Corporation Been A Good Investment?

Since shareholders would have lost about 19% over three years, some World Kinect Corporation investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 3 warning signs for World Kinect that investors should be aware of in a dynamic business environment.

Switching gears from World Kinect, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.