George Damiris has been the CEO of HollyFrontier Corporation (NYSE:HFC) since 2016. 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does George Damiris’s Compensation Compare With Similar Sized Companies?
Our data indicates that HollyFrontier Corporation is worth US$8.5b, and total annual CEO compensation is US$9.9m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.1m. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO compensation of that group was US$7.0m.
As you can see, George Damiris is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean HollyFrontier Corporation is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at HollyFrontier has changed over time.
Is HollyFrontier Corporation Growing?
HollyFrontier Corporation has increased its earnings per share (EPS) by an average of 58% a year, over the last three years In the last year, its revenue is up 31%.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has HollyFrontier Corporation Been A Good Investment?
Boasting a total shareholder return of 54% over three years, HollyFrontier Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We examined the amount HollyFrontier Corporation pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling HollyFrontier shares (free trial).
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.