Shareholders May Not Be So Generous With ICF International, Inc.'s (NASDAQ:ICFI) CEO Compensation And Here's Why

Key Insights

• ICF International's Annual General Meeting to take place on 4th of June
• CEO John Wasson's total compensation includes salary of US$1.04m
• Total compensation is similar to the industry average
• ICF International's three-year loss to shareholders was 15% while its EPS grew by 17% over the past three years

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The underwhelming share price performance of ICF International, Inc. (NASDAQ:ICFI) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 4th of June. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for ICF International

Comparing ICF International, Inc.'s CEO Compensation With The Industry

Our data indicates that ICF International, Inc. has a market capitalization of US$1.6b, and total annual CEO compensation was reported as US$7.2m for the year to December 2024. That's a notable increase of 27% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.0m.

For comparison, other companies in the American Professional Services industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$6.5m. So it looks like ICF International compensates John Wasson in line with the median for the industry. Moreover, John Wasson also holds US$8.3m worth of ICF International stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 12% of total compensation represents salary and 88% is other remuneration. ICF International is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at ICF International, Inc.'s Growth Numbers

Over the past three years, ICF International, Inc. has seen its earnings per share (EPS) grow by 17% per year. Its revenue is up 2.0% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has ICF International, Inc. Been A Good Investment?

With a three year total loss of 15% for the shareholders, ICF International, Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. 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. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. 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 pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for ICF International (1 is a bit unpleasant!) that you should be aware of before investing here.

Important note: ICF International 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.

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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.