Dave Goodin became the CEO of MDU Resources Group, Inc. (NYSE:MDU) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Dave Goodin’s Compensation Compare With Similar Sized Companies?
Our data indicates that MDU Resources Group, Inc. is worth US$5.1b, and total annual CEO compensation is US$4.1m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$793k. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO compensation of that group was US$6.9m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at MDU Resources Group has changed from year to year.
Is MDU Resources Group, Inc. Growing?
MDU Resources Group, Inc. has increased its earnings per share (EPS) by an average of 19% a year, over the last three years In the last year, its revenue is up 4.5%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
You might want to check this free visual report on analyst forecasts for future earnings.
Has MDU Resources Group, Inc. Been A Good Investment?
I think that the total shareholder return of 70%, over three years, would leave most MDU Resources Group, Inc. shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
It looks like MDU Resources Group, Inc. pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. The strong history of shareholder returns might even have some thinking that Dave Goodin deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling MDU Resources Group (free visualization of insider trades).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.