In 2014 John D'Orazio was appointed CEO of RGC Resources, Inc. (NASDAQ:RGCO). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does John D'Orazio's Compensation Compare With Similar Sized Companies?
Our data indicates that RGC Resources, Inc. is worth US$229m, and total annual CEO compensation is US$801k. (This is based on the year to September 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$418k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.2m.
Most shareholders would consider it a positive that John D'Orazio takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at RGC Resources, below.
Is RGC Resources, Inc. Growing?
RGC Resources, Inc. has increased its earnings per share (EPS) by an average of 10% a year, over the last three years (using a line of best fit). Its revenue is up 3.7% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has RGC Resources, Inc. Been A Good Investment?
I think that the total shareholder return of 95%, over three years, would leave most RGC Resources, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
It appears that RGC Resources, Inc. remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that John D'Orazio deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. The cherry on top would be if company insiders are buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at RGC Resources.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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