In 2006 Mike Covey was appointed CEO of PotlatchDeltic Corporation (NASDAQ:PCH). 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Mike Covey’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that PotlatchDeltic Corporation has a market cap of US$2.3b, and is paying total annual CEO compensation of US$6m. That’s a notable increase of 42% on last year. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO compensation was US$4m.
As you can see, Mike Covey is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean PotlatchDeltic Corporation is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at PotlatchDeltic has changed over time.
Is PotlatchDeltic Corporation Growing?
PotlatchDeltic Corporation has increased its earnings per share (EPS) by an average of 42% a year, over the last three years In the last year, its revenue is up 30%.
This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has PotlatchDeltic Corporation Been A Good Investment?
Boasting a total shareholder return of 51% over three years, PotlatchDeltic Corporation has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
We examined the amount PotlatchDeltic Corporation 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.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at PotlatchDeltic Corporation.
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.