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Bill Pate became the CEO of Par Pacific Holdings, Inc. (NYSE:PARR) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Bill Pate's Compensation Compare With Similar Sized Companies?
According to our data, Par Pacific Holdings, Inc. has a market capitalization of US$998m, and pays its CEO total annual compensation worth US$2.5m. (This number is for the twelve months until December 2018). We note that's an increase of 21% above last year. While we always look at total compensation first, we note that the salary component is less, at US$592k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.7m.
So Bill Pate receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with 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 101% per year (using a line of best fit). In the last year, its revenue is up 47%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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?
Par Pacific Holdings, Inc. has served shareholders reasonably well, with a total return of 31% over three years. But they probably don't want to see the CEO 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.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. As a result of these considerations, I would suggest the CEO pay is reasonable. Shareholders may want to check for free if Par Pacific Holdings insiders are buying or selling shares.
Important note: Par Pacific Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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 email@example.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.