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How Much Is Delta Apparel's (NYSEMKT:DLA) CEO Getting Paid?

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Simply Wall St
·3 min read
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Robert Humphreys has been the CEO of Delta Apparel, Inc. (NYSEMKT:DLA) since 1999, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Delta Apparel pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Delta Apparel

How Does Total Compensation For Robert Humphreys Compare With Other Companies In The Industry?

Our data indicates that Delta Apparel, Inc. has a market capitalization of US$148m, and total annual CEO compensation was reported as US$2.7m for the year to October 2020. That's a notable increase of 65% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$780k.

In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$513k. Accordingly, our analysis reveals that Delta Apparel, Inc. pays Robert Humphreys north of the industry median. What's more, Robert Humphreys holds US$8.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2020

2019

Proportion (2020)

Salary

US$780k

US$760k

29%

Other

US$1.9m

US$857k

71%

Total Compensation

US$2.7m

US$1.6m

100%

On an industry level, roughly 29% of total compensation represents salary and 71% is other remuneration. There isn't a significant difference between Delta Apparel and the broader market, in terms of salary allocation in the overall compensation package. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
ceo-compensation

Delta Apparel, Inc.'s Growth

Delta Apparel, Inc. has reduced its earnings per share by 33% a year over the last three years. It saw its revenue drop 12% over the last year.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Delta Apparel, Inc. Been A Good Investment?

With a total shareholder return of 5.0% over three years, Delta Apparel, Inc. has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

As previously discussed, Robert is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Unfortunately, EPS has not grown in three years, failing to impress us. And while shareholder returns have been respectable, they have hardly been superb. So you may want to delve deeper, because we don't think the amount Robert makes is justifiable.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Delta Apparel (of which 2 are concerning!) that you should know about in order to have a holistic understanding of the stock.

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

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.