How Much is DLH Holdings' (NASDAQ:DLHC) CEO Getting Paid?

Zach Parker has been the CEO of DLH Holdings Corp. (NASDAQ:DLHC) since 2010, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for DLH Holdings

How Does Total Compensation For Zach Parker Compare With Other Companies In The Industry?

At the time of writing, our data shows that DLH Holdings Corp. has a market capitalization of US$140m, and reported total annual CEO compensation of US$1.0m for the year to September 2020. That's a fairly small increase of 5.3% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$465k.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$687k. This suggests that Zach Parker is paid more than the median for the industry. What's more, Zach Parker holds US$4.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 22% of total compensation out of all the companies we analyzed, while other remuneration made up 78% of the pie. DLH Holdings is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at DLH Holdings Corp.'s Growth Numbers

DLH Holdings Corp.'s earnings per share (EPS) grew 293% per year over the last three years. It achieved revenue growth of 20% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has DLH Holdings Corp. Been A Good Investment?

Most shareholders would probably be pleased with DLH Holdings Corp. for providing a total return of 90% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

As we noted earlier, DLH Holdings pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But EPS growth and shareholder returns have been top-notch for the past three years. So, in acknowledgment of the overall excellent performance, we believe CEO compensation is appropriate. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Zach's performance creates value for 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 1 warning sign for DLH Holdings that investors should think about before committing capital to this stock.

Important note: DLH Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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. 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.
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