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Is Herc Holdings Inc.'s (NYSE:HRI) CEO Pay Justified?

Simply Wall St

Larry Silber became the CEO of Herc Holdings Inc. (NYSE:HRI) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Herc Holdings

How Does Larry Silber's Compensation Compare With Similar Sized Companies?

According to our data, Herc Holdings Inc. has a market capitalization of US$1.2b, and pays its CEO total annual compensation worth US$4.8m. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$851k. 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$4.1m.

So Larry Silber 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 a visual representation of the CEO compensation at Herc Holdings, below.

NYSE:HRI CEO Compensation, August 5th 2019

Is Herc Holdings Inc. Growing?

Herc Holdings Inc. has increased its earnings per share (EPS) by an average of 42% a year, over the last three years (using a line of best fit). It achieved revenue growth of 7.7% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.

Has Herc Holdings Inc. Been A Good Investment?

Herc Holdings Inc. has served shareholders reasonably well, with a total return of 17% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Larry Silber is paid around the same as most CEOs of similar size companies.

We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So considering these factors, we think the CEO pay is probably quite reasonable. So you may want to check if insiders are buying Herc Holdings shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.