Steven Dabelstein became the CEO of HRL Holdings Limited (ASX:HRL) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Steven Dabelstein’s Compensation Compare With Similar Sized Companies?
According to our data, HRL Holdings Limited has a market capitalization of AU$84m, and pays its CEO total annual compensation worth AU$282k. That’s actually a decrease on the year before. We looked at a group of companies with market capitalizations under AU$277m, and the median CEO compensation was 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?
On average over the last three years, HRL Holdings Limited has grown earnings per share (EPS) by 107% each year. It achieved revenue growth of 100% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. So this free report on the analyst consensus forecasts could help you make a master move on this stock.
Has HRL Holdings Limited Been A Good Investment?
Boasting a total shareholder return of 132% over three years, HRL Holdings Limited has done well by shareholders. 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.
Steven Dabelstein is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! This article has given you an idea about how to analyse CEO remuneration, but it’s important to look at other leaders in the company, too. So it makes sense to check how long the Board of Directors has been in place.
But note: HRL Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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 email@example.com.