We Take A Look At Why Donnelley Financial Solutions, Inc.'s (NYSE:DFIN) CEO Has Earned Their Pay Packet

Key Insights

• Donnelley Financial Solutions' Annual General Meeting to take place on 15th of May
• CEO Dan Leib's total compensation includes salary of US$815.0k
• Total compensation is similar to the industry average
• Over the past three years, Donnelley Financial Solutions' EPS grew by 181% and over the past three years, the total shareholder return was 153%

It would be hard to discount the role that CEO Dan Leib has played in delivering the impressive results at Donnelley Financial Solutions, Inc. (NYSE:DFIN) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 15th of May. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for Donnelley Financial Solutions

Comparing Donnelley Financial Solutions, Inc.'s CEO Compensation With The Industry

Our data indicates that Donnelley Financial Solutions, Inc. has a market capitalization of US$1.8b, and total annual CEO compensation was reported as US$6.8m for the year to December 2023. We note that's a decrease of 10% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$815k.

On examining similar-sized companies in the American Capital Markets industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was US$6.5m. So it looks like Donnelley Financial Solutions compensates Dan Leib in line with the median for the industry. Furthermore, Dan Leib directly owns US$27m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$815k	US$780k	12%
Other	US$5.9m	US$6.8m	88%
Total Compensation	US$6.8m	US$7.5m	100%

Talking in terms of the industry, salary represented approximately 10% of total compensation out of all the companies we analyzed, while other remuneration made up 90% of the pie. According to our research, Donnelley Financial Solutions has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Donnelley Financial Solutions, Inc.'s Growth Numbers

Donnelley Financial Solutions, Inc. has seen its earnings per share (EPS) increase by 181% a year over the past three years. Its revenue is down 2.3% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 Donnelley Financial Solutions, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Donnelley Financial Solutions, Inc. for providing a total return of 153% 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.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Donnelley Financial Solutions that investors should look into moving forward.

Switching gears from Donnelley Financial Solutions, 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.