Joe DeAngelo became the CEO of HD Supply Holdings, Inc. (NASDAQ:HDS) in 2005. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Joe DeAngelo’s Compensation Compare With Similar Sized Companies?
According to our data, HD Supply Holdings, Inc. has a market capitalization of US$6.5b, and paid its CEO total annual compensation worth US$7.5m over the year to February 2019. While we always look at total compensation first, we note that the salary component is less, at US$1.0m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$6.4m.
That means Joe DeAngelo receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at HD Supply Holdings has changed from year to year.
Is HD Supply Holdings, Inc. Growing?
HD Supply Holdings, Inc. has increased its earnings per share (EPS) by an average of 9.1% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 7.0%.
I would argue that the improvement in revenue isn’t particularly impressive, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. It could be important to check this free visual depiction of what analysts expect for the future.
Has HD Supply Holdings, Inc. Been A Good Investment?
With a three year total loss of 6.0%, HD Supply Holdings, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Joe DeAngelo is paid around what is normal the leaders of comparable size companies.
The company cannot boast particularly strong per share growth. And it’s hard to argue that the returns over the last three years have delighted. So suffice it to say we don’t think the compensation is modest. Whatever your view on compensation, you might want to check if insiders are buying or selling HD Supply Holdings shares (free trial).
If you want to buy a stock that is better than HD Supply Holdings, this free list of high return, low debt companies is a great place to look.
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