We Think Shareholders May Want To Consider A Review Of Dana Incorporated's (NYSE:DAN) CEO Compensation Package

Key Insights

• Dana will host its Annual General Meeting on 24th of April
• Salary of US$1.33m is part of CEO Jim Kamsickas's total remuneration
• Total compensation is 142% above industry average
• Over the past three years, Dana's EPS fell by 66% and over the past three years, the total loss to shareholders 52%

Shareholders will probably not be too impressed with the underwhelming results at Dana Incorporated (NYSE:DAN) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 24th of April. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for Dana

How Does Total Compensation For Jim Kamsickas Compare With Other Companies In The Industry?

According to our data, Dana Incorporated has a market capitalization of US$1.7b, and paid its CEO total annual compensation worth US$17m over the year to December 2023. We note that's an increase of 46% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.3m.

For comparison, other companies in the American Auto Components industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$7.2m. Hence, we can conclude that Jim Kamsickas is remunerated higher than the industry median. What's more, Jim Kamsickas holds US$8.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$1.3m	US$1.3m	8%
Other	US$16m	US$11m	92%
Total Compensation	US$17m	US$12m	100%

On an industry level, around 14% of total compensation represents salary and 86% is other remuneration. Dana sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Dana Incorporated's Growth Numbers

Over the last three years, Dana Incorporated has shrunk its earnings per share by 66% per year. Its revenue is up 3.9% over the last year.

Overall this is not a very positive result for shareholders. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Dana Incorporated Been A Good Investment?

The return of -52% over three years would not have pleased Dana Incorporated shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Dana that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.