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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Steven Dabelstein’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that HRL Holdings Limited has a market cap of AU$47m, and is paying total annual CEO compensation of AU$282k. (This figure is for the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$237k. We took a group of companies with market capitalizations below AU$279m, and calculated the median CEO compensation to be AU$360k.
So Steven Dabelstein is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at HRL Holdings has changed from year to year.
Is HRL Holdings Limited Growing?
Over the last three years HRL Holdings Limited has shrunk its earnings per share by an average of 132% per year (measured with a line of best fit). It achieved revenue growth of 59% over the last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has HRL Holdings Limited Been A Good Investment?
Given the total loss of 39% over three years, many shareholders in HRL Holdings Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Remuneration for Steven Dabelstein is close enough to the median pay for a CEO of a similar sized company .
We would like to see somewhat stronger per share growth. And we think the shareholder returns – over three years – have been underwhelming. So suffice it to say we don’t think the compensation is modest! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling HRL Holdings (free visualization of insider trades).
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 email@example.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.