In 2013 Arnold Donald was appointed CEO of Carnival Corporation & Plc (NYSE:CCL). First, this article will compare CEO compensation with compensation at other large companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Arnold Donald's Compensation Compare With Similar Sized Companies?
Our data indicates that Carnival Corporation & Plc is worth US$31b, and total annual CEO compensation was reported as US$14m for the year to November 2018. While we always look at total compensation first, we note that the salary component is less, at US$1.5m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
That means Arnold Donald receives fairly typical remuneration for the CEO of a large company. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Carnival Corporation &, below.
Is Carnival Corporation & Plc Growing?
On average over the last three years, Carnival Corporation & Plc has grown earnings per share (EPS) by 8.4% each year (using a line of best fit). In the last year, its revenue is up 9.7%.
I would argue that the improvement in revenue isn't particularly impressive, but I'm happy with the modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. Shareholders might be interested in this free visualization of analyst forecasts.
Has Carnival Corporation & Plc Been A Good Investment?
With a three year total loss of 1.1%, Carnival Corporation & Plc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Arnold Donald is paid around the same as most CEOs of large companies.
The per share growth could be better, in our view. And shareholder returns have been disappointing over the last three years. So suffice it to say we don't think the compensation is modest. Whatever your view on compensation, you might want to check if insiders are buying or selling Carnival Corporation & shares (free trial).
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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