Robert Humphreys has been the CEO of Delta Apparel, Inc. (NYSEMKT:DLA) since 1999, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Delta Apparel.
How Does Total Compensation For Robert Humphreys Compare With Other Companies In The Industry?
At the time of writing, our data shows that Delta Apparel, Inc. has a market capitalization of US$147m, and reported total annual CEO compensation of US$2.7m for the year to October 2020. Notably, that's an increase of 65% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$780k.
For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$513k. This suggests that Robert Humphreys is paid more than the median for the industry. What's more, Robert Humphreys holds US$8.4m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Speaking on an industry level, nearly 29% of total compensation represents salary, while the remainder of 71% is other remuneration. Our data reveals that Delta Apparel allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Delta Apparel, Inc.'s Growth Numbers
Over the last three years, Delta Apparel, Inc. has shrunk its earnings per share by 33% per year. It saw its revenue drop 12% over the last year.
Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Delta Apparel, Inc. Been A Good Investment?
Delta Apparel, Inc. has generated a total shareholder return of 4.6% over three years, so most shareholders wouldn't be too disappointed. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
As we noted earlier, Delta Apparel pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Unfortunately, EPS has not grown in three years, failing to impress us. And while shareholder returns have been respectable, they have hardly been superb. So you can understand why we do not think CEO compensation is particularly modest!
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 2 which are concerning) in Delta Apparel we think you should know about.
Important note: Delta Apparel 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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