Daryl C. Wilson has been the CEO of Hydrogenics Corporation (NASDAQ:HYGS) since 2006. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. 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.
How Does Daryl C. Wilson’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Hydrogenics Corporation has a market cap of US$70m, and is paying total annual CEO compensation of US$1.1m. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at US$376k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$295k.
As you can see, Daryl C. Wilson is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Hydrogenics Corporation is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Hydrogenics has changed from year to year.
Is Hydrogenics Corporation Growing?
Over the last three years Hydrogenics Corporation has grown its earnings per share (EPS) by an average of 9.3% per year. In the last year, its revenue is up 16%.
This revenue growth could really point to a brighter future. And the modest growth in earnings per share isn’t bad, either. So while we’d stop just short of calling this a top performer, but we think it is well worth watching.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Hydrogenics Corporation Been A Good Investment?
Since shareholders would have lost about 43% over three years, some Hydrogenics Corporation shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We compared the total CEO remuneration paid by Hydrogenics Corporation, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. So you may want to check if insiders are buying Hydrogenics shares with their own money (free access).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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.