Is MDU Resources Group Inc’s (NYSE:MDU) CEO Salary Justified?
Dave Goodin has been the CEO of MDU Resources Group Inc (NYSE:MDU) since 2013. 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 process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for MDU Resources Group
How Does Dave Goodin’s Compensation Compare With Similar Sized Companies?
Our data indicates that MDU Resources Group Inc is worth US$5.0b, and total annual CEO compensation is US$4.1m. That’s a notable increase of 16% on last year. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO compensation of that group was US$6.9m.
A first glance this seems like a real positive for shareholders, since Dave Goodin is paid less than the average compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at MDU Resources Group, below.
Is MDU Resources Group Inc Growing?
MDU Resources Group Inc has increased its earnings per share (EPS) by an average of 19% a year, over the last three years In the last year, its revenue is up 4.5%.
This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
You might want to check this free visual report on analyst forecasts for future earnings.
Has MDU Resources Group Inc Been A Good Investment?
Boasting a total shareholder return of 61% over three years, MDU Resources Group Inc 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.
In Summary…
It appears that MDU Resources Group Inc remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Dave Goodin deserves a raise!
It’s not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders are also buying shares with their own money.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of 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 editorial-team@simplywallst.com.
