Yahoo Finance Dover Corporation's (NYSE:DOV) CEO Compensation Is Looking A Bit Stretched At The Moment
Key Insights
Dover to hold its Annual General Meeting on 3rd of May
CEO Rich Tobin's total compensation includes salary of US$1.29m
Total compensation is 43% above industry average
Dover's EPS grew by 27% over the past three years while total shareholder return over the past three years was 26%
Under the guidance of CEO Rich Tobin, Dover Corporation (NYSE:DOV) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 3rd of May. However, some shareholders may still want to keep CEO compensation within reason.
Check out our latest analysis for Dover
Comparing Dover Corporation's CEO Compensation With The Industry
Our data indicates that Dover Corporation has a market capitalization of US$25b, and total annual CEO compensation was reported as US$17m for the year to December 2023. That's a notable increase of 19% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.3m.
In comparison with other companies in the American Machinery industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$12m. Accordingly, our analysis reveals that Dover Corporation pays Rich Tobin north of the industry median. What's more, Rich Tobin holds US$46m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.3m | US$1.3m | 8% |
Other | US$16m | US$13m | 92% |
Total Compensation | US$17m | US$14m | 100% |
Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. Dover sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Dover Corporation's Growth Numbers
Dover Corporation's earnings per share (EPS) grew 27% per year over the last three years. Revenue was pretty flat on last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Dover Corporation Been A Good Investment?
Dover Corporation has served shareholders reasonably well, with a total return of 26% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 4 warning signs for Dover (1 is significant!) that you should be aware of before investing here.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
