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In 2006 Daryl C. Wilson was appointed CEO of Hydrogenics Corporation (NASDAQ:HYGS). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. 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 Daryl C. Wilson’s Compensation Compare With Similar Sized Companies?
Our data indicates that Hydrogenics Corporation is worth US$215m, and total annual CEO compensation is US$1.2m. (This is based on the year to December 2018). That’s a modest increase of 3.8% on the prior year year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$405k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.1m.
So Daryl C. Wilson is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Hydrogenics has changed over time.
Is Hydrogenics Corporation Growing?
On average over the last three years, Hydrogenics Corporation has grown earnings per share (EPS) by 3.6% each year (using a line of best fit). In the last year, its revenue is down -29%.
I would prefer it if there was revenue growth, but I’m happy with the EPS growth. 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 Hydrogenics Corporation Been A Good Investment?
I think that the total shareholder return of 57%, over three years, would leave most Hydrogenics Corporation shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Daryl C. Wilson is paid around the same as most CEOs of similar size companies.
The company isn’t showing particularly great growth, but shareholder returns have been pleasing. So we can conclude that on this analysis the CEO compensation seems pretty sound. Whatever your view on compensation, you might want to check if insiders are buying or selling Hydrogenics shares (free trial).
If you want to buy a stock that is better than Hydrogenics, this free list of high return, low debt companies is a great place to look.
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 firstname.lastname@example.org. 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.