Yahoo Finance How Should Investors Feel About Delek US Holdings, Inc.'s (NYSE:DK) CEO Pay?
Ezra Yemin became the CEO of Delek US Holdings, Inc. (NYSE:DK) in 2004. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Delek US Holdings
How Does Ezra Yemin's Compensation Compare With Similar Sized Companies?
According to our data, Delek US Holdings, Inc. has a market capitalization of US$2.7b, and pays its CEO total annual compensation worth US$3.0m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$973k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.1m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less 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 Delek US Holdings, below.
Is Delek US Holdings, Inc. Growing?
Delek US Holdings, Inc. has increased its earnings per share (EPS) by an average of 98% a year, over the last three years (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has Delek US Holdings, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Delek US Holdings, Inc. for providing a total return of 118% over three years. 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...
It looks like Delek US Holdings, Inc. pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. The strong history of shareholder returns might even have some thinking that Ezra Yemin deserves a raise!
It's not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders are also buying shares with their own money. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Delek US Holdings (free visualization of insider trades).
Important note: Delek US Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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. Thank you for reading.
