Key Insights

• Hawaiian Holdings will host its Annual General Meeting on 15th of May
• CEO Peter Ingram's total compensation includes salary of US$771.3k
• The overall pay is 173% above the industry average
• Hawaiian Holdings' EPS grew by 13% over the past three years while total shareholder loss over the past three years was 43%

In the past three years, the share price of Hawaiian Holdings, Inc. (NASDAQ:HA) has struggled to grow and now shareholders are sitting on a loss. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 15th of May could be an opportunity for shareholders to bring these concerns to the board's attention. 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.

How Does Total Compensation For Peter Ingram Compare With Other Companies In The Industry?

At the time of writing, our data shows that Hawaiian Holdings, Inc. has a market capitalization of US$648m, and reported total annual CEO compensation of US$4.5m for the year to December 2023. That's a notable increase of 51% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$771k.

For comparison, other companies in the American Airlines industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$1.7m. Accordingly, our analysis reveals that Hawaiian Holdings, Inc. pays Peter Ingram north of the industry median. Furthermore, Peter Ingram directly owns US$5.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 11% of total compensation out of all the companies we analyzed, while other remuneration made up 89% of the pie. According to our research, Hawaiian Holdings has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Hawaiian Holdings, Inc.'s Growth

Over the past three years, Hawaiian Holdings, Inc. has seen its earnings per share (EPS) grow by 13% per year. In the last year, its revenue changed by just 1.0%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Hawaiian Holdings, Inc. Been A Good Investment?

The return of -43% over three years would not have pleased Hawaiian Holdings, Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. 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.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Hawaiian Holdings that investors should look into moving forward.

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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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.