In 2015 Bill Pate was appointed CEO of Par Pacific Holdings, Inc. (NYSE:PARR). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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 Bill Pate's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Par Pacific Holdings, Inc. has a market cap of US$1.1b, and reported total annual CEO compensation of US$2.5m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$592k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.5m.
So Bill Pate is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Par Pacific Holdings, below.
Is Par Pacific Holdings, Inc. Growing?
Over the last three years Par Pacific Holdings, Inc. has grown its earnings per share (EPS) by an average of 76% per year (using a line of best fit). Its revenue is up 53% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Par Pacific Holdings, Inc. Been A Good Investment?
I think that the total shareholder return of 47%, over three years, would leave most Par Pacific Holdings, Inc. shareholders smiling. 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.
Bill Pate is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Par Pacific Holdings insiders are buying or selling shares.
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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