Is HRL Holdings Limited’s (ASX:HRL) CEO Paid Enough Relative To Peers?

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Steven Dabelstein has been the CEO of HRL Holdings Limited (ASX:HRL) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. 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.

Check out our latest analysis for HRL Holdings

How Does Steven Dabelstein’s Compensation Compare With Similar Sized Companies?

Our data indicates that HRL Holdings Limited is worth AU$57m, and total annual CEO compensation is AU$282k. (This number is for the twelve months until June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$237k. We took a group of companies with market capitalizations below AU$288m, and calculated the median CEO total compensation to be AU$358k.

So Steven Dabelstein is paid around the average of the companies we looked at. 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.

You can see, below, how CEO compensation at HRL Holdings has changed over time.

ASX:HRL CEO Compensation, June 14th 2019
ASX:HRL CEO Compensation, June 14th 2019

Is HRL Holdings Limited Growing?

HRL Holdings Limited has reduced its earnings per share by an average of 132% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 59%.

The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. It’s hard to reach a conclusion about business performance right now. This may be one to watch. It could be important to check this free visual depiction of what analysts expect for the future.

Has HRL Holdings Limited Been A Good Investment?

Given the total loss of 1.8% over three years, many shareholders in HRL Holdings Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

Steven Dabelstein is paid around the same as most CEOs of similar size companies.

We would like to see somewhat stronger per share growth. And shareholder returns have been disappointing over the last three years. So it would take a bold person to suggest the pay is too modest. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at HRL Holdings.

Important note: HRL Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.