Yahoo Finance Core Laboratories Inc.'s (NYSE:CLB) CEO Compensation Is Looking A Bit Stretched At The Moment
Key Insights
Core Laboratories will host its Annual General Meeting on 8th of May
Total pay for CEO Larry Bruno includes US$886.9k salary
Total compensation is 56% above industry average
Core Laboratories' three-year loss to shareholders was 50% while its EPS grew by 23% over the past three years
Shareholders of Core Laboratories Inc. (NYSE:CLB) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 8th of May. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
See our latest analysis for Core Laboratories
How Does Total Compensation For Larry Bruno Compare With Other Companies In The Industry?
At the time of writing, our data shows that Core Laboratories Inc. has a market capitalization of US$741m, and reported total annual CEO compensation of US$8.0m for the year to December 2023. We note that's an increase of 25% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$887k.
On examining similar-sized companies in the American Energy Services industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$5.1m. Hence, we can conclude that Larry Bruno is remunerated higher than the industry median. What's more, Larry Bruno holds US$2.6m worth of shares in the company in their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$887k | US$820k | 11% |
Other | US$7.1m | US$5.6m | 89% |
Total Compensation | US$8.0m | US$6.4m | 100% |
On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. In Core Laboratories' case, non-salary compensation represents a greater slice of total remuneration, 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 Core Laboratories Inc.'s Growth Numbers
Core Laboratories Inc. has seen its earnings per share (EPS) increase by 23% a year over the past three years. In the last year, its revenue is up 1.6%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Core Laboratories Inc. Been A Good Investment?
The return of -50% over three years would not have pleased Core Laboratories Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Core Laboratories that investors should think about before committing capital to this 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.
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.
