Increases to CEO Compensation Might Be Put On Hold For Now at Crown Holdings, Inc. (NYSE:CCK)

Performance at Crown Holdings, Inc. (NYSE:CCK) has been reasonably good and CEO Tim Donahue has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 22 April 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Crown Holdings

Comparing Crown Holdings, Inc.'s CEO Compensation With the industry

According to our data, Crown Holdings, Inc. has a market capitalization of US$14b, and paid its CEO total annual compensation worth US$18m over the year to December 2020. We note that's an increase of 36% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.2m.

For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$10m. This suggests that Tim Donahue is paid more than the median for the industry. Furthermore, Tim Donahue directly owns US$68m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 12% of total compensation represents salary, while the remainder of 88% is other remuneration. Crown Holdings pays a modest slice of remuneration through salary, as compared 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.

Crown Holdings, Inc.'s Growth

Over the past three years, Crown Holdings, Inc. has seen its earnings per share (EPS) grow by 22% per year. The trailing twelve months of revenue was pretty much the same as the prior period.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 Crown Holdings, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Crown Holdings, Inc. for providing a total return of 104% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

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 Crown Holdings that investors should think about before committing capital to this stock.

Important note: Crown Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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 (at) simplywallst.com.