In 2003 Randall Stuewe was appointed CEO of Darling Ingredients Inc. (NYSE:DAR). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
View our latest analysis for Darling Ingredients
How Does Randall Stuewe's Compensation Compare With Similar Sized Companies?
According to our data, Darling Ingredients Inc. has a market capitalization of US$4.7b, and paid its CEO total annual compensation worth US$5.8m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.2m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$4.9m.
That means Randall Stuewe receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Darling Ingredients, below.
Is Darling Ingredients Inc. Growing?
On average over the last three years, Darling Ingredients Inc. has shrunk earnings per share by 6.9% each year (measured with a line of best fit). Its revenue is down 3.8% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has Darling Ingredients Inc. Been A Good Investment?
Boasting a total shareholder return of 142% over three years, Darling Ingredients Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Remuneration for Randall Stuewe is close enough to the median pay for a CEO of a similar sized company .
The company isn't growing earnings per share, but shareholder returns have been strong over the last three years. So we think most shareholders wouldn't be too worried about CEO compensation, which is close to the median for similar sized companies. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Darling Ingredients.
If you want to buy a stock that is better than Darling Ingredients, this free list of high return, low debt companies is a great place to look.
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.
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