In 2011 Blake DeBerry was appointed CEO of Dril-Quip, Inc. (NYSE:DRQ). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Blake DeBerry's Compensation Compare With Similar Sized Companies?
Our data indicates that Dril-Quip, Inc. is worth US$1.7b, and total annual CEO compensation was reported as US$4.1m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$612k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$4.1m.
So Blake DeBerry receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Dril-Quip has changed from year to year.
Is Dril-Quip, Inc. Growing?
Dril-Quip, Inc. has reduced its earnings per share by an average of 102% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 3.4% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Dril-Quip, Inc. Been A Good Investment?
Given the total loss of 12% over three years, many shareholders in Dril-Quip, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Blake DeBerry is paid around what is normal the leaders of comparable size companies.
Returns have been disappointing and the company is not growing its earnings per share. Suffice it to say, we don't think the CEO is underpaid! Whatever your view on compensation, you might want to check if insiders are buying or selling Dril-Quip shares (free trial).
Important note: Dril-Quip may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.