Chris Bingaman has been the CEO of Diamond Hill Investment Group, Inc. (NASDAQ:DHIL) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Chris Bingaman's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Diamond Hill Investment Group, Inc. has a market cap of US$442m, and is paying total annual CEO compensation of US$4.4m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$300k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.9m.
It would therefore appear that Diamond Hill Investment Group, Inc. pays Chris Bingaman more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Diamond Hill Investment Group has changed from year to year.
Is Diamond Hill Investment Group, Inc. Growing?
Diamond Hill Investment Group, Inc. has increased its earnings per share (EPS) by an average of 4.4% a year, over the last three years (using a line of best fit). Its revenue is down -6.9% over last year.
I would prefer it if there was revenue growth, but the improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Diamond Hill Investment Group, Inc. Been A Good Investment?
Given the total loss of 21% over three years, many shareholders in Diamond Hill Investment Group, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount Diamond Hill Investment Group, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling Diamond Hill Investment Group shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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