Should You Be Pleased About The CEO Pay At Dycom Industries, Inc.’s (NYSE:DY)
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Steve Nielsen became the CEO of Dycom Industries, Inc. (NYSE:DY) in 1999. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Dycom Industries
How Does Steve Nielsen’s Compensation Compare With Similar Sized Companies?
According to our data, Dycom Industries, Inc. has a market capitalization of US$1.8b, and pays its CEO total annual compensation worth US$2.8m. (This figure is for the year to 2018). While we always look at total compensation first, we note that the salary component is less, at US$500k. 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$3.4m.
That means Steve Nielsen 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 a visual representation of the CEO compensation at Dycom Industries, below.
Is Dycom Industries, Inc. Growing?
On average over the last three years, Dycom Industries, Inc. has grown earnings per share (EPS) by 3.5% each year (using a line of best fit). Its revenue is down -4.8% over last year.
I would prefer it if there was revenue growth, but I’m happy with the EPS growth. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has Dycom Industries, Inc. Been A Good Investment?
Dycom Industries, Inc. has generated a total shareholder return of 13% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
Steve Nielsen is paid around the same as most CEOs of similar size companies.
The company isn’t showing particularly great growth, and shareholder turns haven’t been particularly inspiring in the last few years. While the CEO may not be underpaid, we don’t think the pay is too generous either. Shareholders may want to check for free if Dycom Industries insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
