It Looks Like The CEO Of DoorDash, Inc. (NASDAQ:DASH) May Be Underpaid Compared To Peers

Key Insights

• DoorDash will host its Annual General Meeting on 24th of June
• Total pay for CEO Tony Xu includes US$300.0k salary
• Total compensation is 98% below industry average
• Over the past three years, DoorDash's EPS grew by 57% and over the past three years, the total shareholder return was 259%

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Shareholders will be pleased by the impressive results for DoorDash, Inc. (NASDAQ:DASH) recently and CEO Tony Xu has played a key role. At the upcoming AGM on 24th of June, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

See our latest analysis for DoorDash

How Does Total Compensation For Tony Xu Compare With Other Companies In The Industry?

Our data indicates that DoorDash, Inc. has a market capitalization of US$93b, and total annual CEO compensation was reported as US$319k for the year to December 2024. This means that the compensation hasn't changed much from last year. In particular, the salary of US$300.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the American Hospitality industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$16m. That is to say, Tony Xu is paid under the industry median. Moreover, Tony Xu also holds US$2.3b worth of DoorDash stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 18% of total compensation represents salary and 82% is other remuneration. DoorDash is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

DoorDash, Inc.'s Growth

DoorDash, Inc. has seen its earnings per share (EPS) increase by 57% a year over the past three years. In the last year, its revenue is up 23%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has DoorDash, Inc. Been A Good Investment?

Most shareholders would probably be pleased with DoorDash, Inc. for providing a total return of 259% 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...

Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for DoorDash that investors should look into moving forward.

Switching gears from DoorDash, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.