How Much Did Icahn Enterprises' (NASDAQ:IEP) CEO Pocket Last Year?
Keith Cozza became the CEO of Icahn Enterprises L.P. ( NASDAQ:IEP ) in 2014, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Icahn Enterprises pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for Icahn Enterprises
How Does Total Compensation For Keith Cozza Compare With Other Companies In The Industry?
According to our data, Icahn Enterprises L.P. has a market capitalization of US$11b, and paid its CEO total annual compensation worth US$6.5m over the year to December 2019. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.5m.
In comparison with other companies in the industry with market capitalizations over US$8.0b , the reported median total CEO compensation was US$15m. This suggests that Keith Cozza is paid below the industry median. What's more, Keith Cozza holds US$100k worth of shares in the company in their own name.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$1.5m | US$1.5m | 23% |
Other | US$5.0m | US$5.0m | 77% |
Total Compensation | US$6.5m | US$6.5m | 100% |
On an industry level, roughly 9.0% of total compensation represents salary and 91% is other remuneration. It's interesting to note that Icahn Enterprises pays out a greater portion of remuneration through salary, compared to the industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Icahn Enterprises L.P.'s Growth
Over the last three years, Icahn's earnings per share shrunk by 113% per year. Its revenue is down 21% over the previous year.
Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings. .
Has Icahn Enterprises L.P. Been A Good Investment?
Boasting a total shareholder return of 34% over three years, Icahn Enterprises L.P. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
As previously discussed, Keith is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. And although the company is suffering from declining EPS growth over the past three years, shareholder returns remain strong. Although we'd like to see positive EPS growth, we'd argue the remuneration is modest, based on our observations.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for Icahn Enterprises that investors should look into moving forward.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com .
