Jim Janik has been the CEO of Douglas Dynamics Inc (NYSE:PLOW) since 2000. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. 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 Jim Janik’s Compensation Compare With Similar Sized Companies?
Our data indicates that Douglas Dynamics Inc is worth US$843m, and total annual CEO compensation is US$2.4m. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$618k. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO compensation of that group was US$2.3m.
That means Jim Janik receives fairly typical remuneration for the CEO of a company that size. 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 Douglas Dynamics has changed over time.
Is Douglas Dynamics Inc Growing?
Douglas Dynamics Inc has increased its earnings per share (EPS) by an average of 10% a year, over the last three years Its revenue is up 9.2% over last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Douglas Dynamics Inc Been A Good Investment?
Most shareholders would probably be pleased with Douglas Dynamics Inc for providing a total return of 77% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Jim Janik is paid around what is normal the leaders of comparable size companies.
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 Douglas Dynamics shares with their own money (free access).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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.