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Does Walker & Dunlop, Inc.'s (NYSE:WD) CEO Pay Reflect Performance?

Simply Wall St

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Willy Walker has been the CEO of Walker & Dunlop, Inc. (NYSE:WD) since 2007. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Walker & Dunlop

How Does Willy Walker's Compensation Compare With Similar Sized Companies?

According to our data, Walker & Dunlop, Inc. has a market capitalization of US$1.7b, and pays its CEO total annual compensation worth US$4.1m. (This is based on the year to December 2018). That's less than last year. We think total compensation is more important but we note that the CEO salary is lower, at US$900k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$3.7m.

So Willy Walker receives a similar amount to the median CEO pay, amongst 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, below, how CEO compensation at Walker & Dunlop has changed over time.

NYSE:WD CEO Compensation, May 1st 2019

Is Walker & Dunlop, Inc. Growing?

On average over the last three years, Walker & Dunlop, Inc. has grown earnings per share (EPS) by 32% each year (using a line of best fit). In the last year, its revenue is up 1.7%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.

Has Walker & Dunlop, Inc. Been A Good Investment?

I think that the total shareholder return of 155%, over three years, would leave most Walker & Dunlop, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Remuneration for Willy Walker is close enough to the median pay for a CEO of a similar sized company .

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying Walker & Dunlop shares with their own money (free access).

If you want to buy a stock that is better than Walker & Dunlop, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.