What Did HD Supply Holdings, Inc.'s (NASDAQ:HDS) CEO Take Home Last Year?

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Joe DeAngelo has been the CEO of HD Supply Holdings, Inc. (NASDAQ:HDS) since 2005. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for HD Supply Holdings

How Does Joe DeAngelo's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that HD Supply Holdings, Inc. has a market cap of US$7.3b, and is paying total annual CEO compensation of US$7.5m. (This number is for the twelve months until February 2019). Notably, that's an increase of 17% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.0m. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.9m.

That means Joe DeAngelo receives fairly typical remuneration for the CEO of a company that size. 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 HD Supply Holdings has changed over time.

Is HD Supply Holdings, Inc. Growing?

HD Supply Holdings, Inc. has reduced its earnings per share by an average of 61% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 18%.

Sadly for shareholders, earnings per share are actually down, over three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.

Has HD Supply Holdings, Inc. Been A Good Investment?

With a total shareholder return of 17% over three years, HD Supply Holdings, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Remuneration for Joe DeAngelo is close enough to the median pay for a CEO of a similar sized company .

We're not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. This contrasts with the growth in CEO remuneration. We do not think the CEO pay is a problem, but one might argue that the company should improve returns to shareholders before increasing it. So you may want to check if insiders are buying HD Supply Holdings shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.