Jeff Hines has been the CEO of The York Water Company (NASDAQ:YORW) since 2008. 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 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$414m, and is paying total annual CEO compensation of US$637k. That’s a notable increase of 24% on last year. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO compensation was US$2m.
Most shareholders would consider it a positive that Jeff Hines takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it’s important we delve into the performance of the actual business.
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 1.8% each year. It achieved revenue growth of 1.4% over the last year.
I’d prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise.
It could be important to check this free visual depiction of what analysts expect for the future.
Has The York Water Company Been A Good Investment?
Most shareholders would probably be pleased with The York Water Company for providing a total return of 47% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
The York Water Company is currently paying its CEO below what is normal for companies of its size.
It’s well worth noting that while Jeff Hines is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. So you may want to check if insiders are buying The York Water Company 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 email@example.com.