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Should You Worry About HD Supply Holdings, Inc.'s (NASDAQ:HDS) CEO Salary Level?

Simply Wall St

Joe DeAngelo has been the CEO of HD Supply Holdings, Inc. (NASDAQ:HDS) 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.

See our latest analysis for HD Supply Holdings

How Does Joe DeAngelo's Compensation Compare With Similar Sized Companies?

According to our data, HD Supply Holdings, Inc. has a market capitalization of US$6.5b, and paid its CEO total annual compensation worth US$7.5m over the year to February 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.0m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.4m.

So Joe DeAngelo is paid around the average of 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.

You can see a visual representation of the CEO compensation at HD Supply Holdings, below.

NasdaqGS:HDS CEO Compensation, January 27th 2020

Is HD Supply Holdings, Inc. Growing?

Over the last three years HD Supply Holdings, Inc. has grown its earnings per share (EPS) by an average of 9.1% per year (using a line of best fit). It achieved revenue growth of 7.0% over the last year.

I'm not particularly impressed by the revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.

Has HD Supply Holdings, Inc. Been A Good Investment?

Given the total loss of 5.0% over three years, many shareholders in HD Supply Holdings, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Remuneration for Joe DeAngelo is close enough to the median pay for a CEO of a similar sized company .

The per share growth could be better, in our view. And it's hard to argue that the returns over the last three years have delighted. So suffice it to say we don't think the compensation is modest. Shareholders may want to check for free if HD Supply Holdings insiders are buying or selling shares.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.