Here's Why Shareholders Should Examine HF Sinclair Corporation's (NYSE:DINO) CEO Compensation Package More Closely

Key Insights

• HF Sinclair will host its Annual General Meeting on 14th of May
• Salary of US$1.11m is part of CEO Tim Go's total remuneration
• Total compensation is 50% above industry average
• HF Sinclair's EPS declined by 41% over the past three years while total shareholder loss over the past three years was 16%

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

HF Sinclair Corporation (NYSE:DINO) has not performed well recently and CEO Tim Go will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 14th of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for HF Sinclair

How Does Total Compensation For Tim Go Compare With Other Companies In The Industry?

According to our data, HF Sinclair Corporation has a market capitalization of US$6.2b, and paid its CEO total annual compensation worth US$13m over the year to December 2024. Notably, that's a decrease of 18% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.1m.

For comparison, other companies in the American Oil and Gas industry with market capitalizations ranging between US$4.0b and US$12b had a median total CEO compensation of US$8.5m. Hence, we can conclude that Tim Go is remunerated higher than the industry median. Furthermore, Tim Go directly owns US$5.9m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$1.1m	US$1.0m	9%
Other	US$12m	US$14m	91%
Total Compensation	US$13m	US$16m	100%

On an industry level, around 14% of total compensation represents salary and 86% is other remuneration. It's interesting to note that HF Sinclair allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

HF Sinclair Corporation's Growth

Over the last three years, HF Sinclair Corporation has shrunk its earnings per share by 41% per year. In the last year, its revenue is down 11%.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has HF Sinclair Corporation Been A Good Investment?

With a three year total loss of 16% for the shareholders, HF Sinclair Corporation would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for HF Sinclair that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.