Here's What We Think About Honeywell International's (NYSE:HON) CEO Pay

Darius Adamczyk has been the CEO of Honeywell International Inc. (NYSE:HON) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Honeywell International

How Does Total Compensation For Darius Adamczyk Compare With Other Companies In The Industry?

According to our data, Honeywell International Inc. has a market capitalization of US$123b, and paid its CEO total annual compensation worth US$21m over the year to December 2019. That's a fairly small increase of 6.6% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.6m.

In comparison with other companies in the industry with market capitalizations over US$8.0b , the reported median total CEO compensation was US$19m. From this we gather that Darius Adamczyk is paid around the median for CEOs in the industry. What's more, Darius Adamczyk holds US$21m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 10% of total compensation out of all the companies we analyzed, while other remuneration made up 90% of the pie. It's interesting to note that Honeywell International allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Honeywell International Inc.'s Growth

Honeywell International Inc.'s earnings per share (EPS) grew 8.0% per year over the last three years. In the last year, its revenue is down 11%.

We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Honeywell International Inc. Been A Good Investment?

We think that the total shareholder return of 34%, over three years, would leave most Honeywell International Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

As previously discussed, Darius is compensated close to the median for companies of its size, and which belong to the same industry. But the business isn't reporting great numbers in terms of EPS growth. At the same time, shareholder returns have remained strong over the same period. There is room for improved company performance, but we don't see the CEO compensation as a big issue here.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Honeywell International that you should be aware of before investing.

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.

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