How Much is H&E Equipment Services, Inc.’s (NASDAQ:HEES) CEO Getting Paid?
John Engquist has been the CEO of H&E Equipment Services, Inc. (NASDAQ:HEES) since 2005. 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 method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for H&E Equipment Services
How Does John Engquist’s Compensation Compare With Similar Sized Companies?
According to our data, H&E Equipment Services, Inc. has a market capitalization of US$701m, and pays its CEO total annual compensation worth US$2.5m. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at US$867k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO compensation was US$2.3m.
That means John Engquist receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at H&E Equipment Services has changed over time.
Is H&E Equipment Services, Inc. Growing?
Over the last three years H&E Equipment Services, Inc. has grown its earnings per share (EPS) by an average of 48% per year. Its revenue is up 21% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
You might want to check this free visual report on analyst forecasts for future earnings.
Has H&E Equipment Services, Inc. Been A Good Investment?
With a total shareholder return of 32% over three years, H&E Equipment Services, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
John Engquist is paid around what is normal the leaders of comparable size companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So considering these factors, we think the CEO pay is probably quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling H&E Equipment Services (free visualization of insider trades).
Or you might rather take a peek at this analytical visualization of historic cash flow, 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.
