David Anderson became the CEO of Northwest Natural Holding Company (NYSE:NWN) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
How Does David Anderson's Compensation Compare With Similar Sized Companies?
Our data indicates that Northwest Natural Holding Company is worth US$2.1b, and total annual CEO compensation was reported as US$3.6m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$679k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$4.1m.
So David Anderson is paid around the average of 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, below, how CEO compensation at Northwest Natural Holding has changed over time.
Is Northwest Natural Holding Company Growing?
Northwest Natural Holding Company has increased its earnings per share (EPS) by an average of 2.6% a year, over the last three years (using a line of best fit). It achieved revenue growth of 1.9% over the last year.
I'd prefer higher revenue growth, but I'm happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. It could be important to check this free visual depiction of what analysts expect for the future.
Has Northwest Natural Holding Company Been A Good Investment?
Northwest Natural Holding Company has served shareholders reasonably well, with a total return of 32% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
David Anderson is paid around what is normal the leaders of comparable size companies.
The company isn't showing particularly great growth, and shareholder turns haven't been particularly inspiring in the last few years. But we don't think the CEO compensation is a problem. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Northwest Natural Holding (free visualization of insider trades).
If you want to buy a stock that is better than Northwest Natural Holding, this free list of high return, low debt companies is a great place to look.
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