In 2008 Jeff Hines was appointed CEO of The York Water Company (NASDAQ:YORW). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Jeff Hines's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that The York Water Company has a market cap of US$464m, and is paying total annual CEO compensation of US$362k. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$313k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.8m.
Most shareholders would consider it a positive that Jeff Hines takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at York Water, below.
Is The York Water Company Growing?
On average over the last three years, The York Water Company has grown earnings per share (EPS) by 3.7% each year (using a line of best fit). Revenue was pretty flat on last year.
I generally like to see a little revenue growth, but I'm happy with the EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has The York Water Company Been A Good Investment?
With a total shareholder return of 21% over three years, The York Water Company shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
It looks like The York Water Company pays its CEO less than similar sized companies.
Jeff Hines is paid less than what is normal at similar size companies, and but overall performance has left me uninspired. But on this analysis I see no issue with the CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at York Water.
If you want to buy a stock that is better than York Water, this free list of high return, low debt companies is a great place to look.
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