Joe DeAngelo has been the CEO of HD Supply Holdings Inc (NASDAQ:HDS) since 2005. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
How Does Joe DeAngelo’s Compensation Compare With Similar Sized Companies?
Our data indicates that HD Supply Holdings Inc is worth US$7.1b, and total annual CEO compensation is US$6m. Notably, that’s an increase of 20% over the year before. We examined companies with market caps from US$4.0b to US$12.0b, and discovered that the median CEO compensation of that group was US$7m.
So Joe DeAngelo receives a similar amount to the median CEO pay, amongst 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 HD Supply Holdings has changed over time.
Is HD Supply Holdings Inc Growing?
On average over the last three years, HD Supply Holdings Inc has shrunk earnings per share by 42% each year. It achieved revenue growth of 12% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And while it’s good to see some good revenue growth recently, the growth isn’t really fast enough for me to put aside my concerns around earnings. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
You might want to check this free visual report on analyst forecasts for future earnings.
Has HD Supply Holdings Inc Been A Good Investment?
HD Supply Holdings Inc has generated a total shareholder return of 26% over three years, so most shareholders would 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.
Joe DeAngelo is paid around the same as most CEOs of similar size companies.
We feel that earnings per share have been a bit disappointing, but and we don’t think the total returns are amazing. This contrasts with the growth in CEO remuneration. We wouldn’t say the CEO pay is too high, but it’s probably fair to say that many shareholders would like to see improved performance, before any pay rise occurs. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling HD Supply Holdings Inc (free visualization of insider trades).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
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 firstname.lastname@example.org.