In 2016 Wolfgang Dangel was appointed CEO of Helios Technologies, Inc. (NASDAQ:HLIO). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Wolfgang Dangel's Compensation Compare With Similar Sized Companies?
Our data indicates that Helios Technologies, Inc. is worth US$1.3b, and total annual CEO compensation is US$1.5m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$530k. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.1m.
A first glance this seems like a real positive for shareholders, since Wolfgang Dangel is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Helios Technologies has changed from year to year.
Is Helios Technologies, Inc. Growing?
Over the last three years Helios Technologies, Inc. has grown its earnings per share (EPS) by an average of 22% per year (using a line of best fit). It achieved revenue growth of 40% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Helios Technologies, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Helios Technologies, Inc. for providing a total return of 43% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Helios Technologies, Inc. is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. The strong history of shareholder returns might even have some thinking that Wolfgang Dangel deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares. Whatever your view on compensation, you might want to check if insiders are buying or selling Helios Technologies shares (free trial).
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.
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