In This Article:
Jim Kamsickas has been the CEO of Dana Incorporated (NYSE:DAN) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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 Dana
How Does Jim Kamsickas's Compensation Compare With Similar Sized Companies?
Our data indicates that Dana Incorporated is worth US$1.8b, and total annual CEO compensation is US$10m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.1m. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$4.1m.
Thus we can conclude that Jim Kamsickas receives more in total compensation than the median of a group of companies in the same market, and of similar size to Dana Incorporated. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Dana has changed from year to year.
Is Dana Incorporated Growing?
Over the last three years Dana Incorporated has shrunk its earnings per share by an average of 8.6% per year (measured with a line of best fit). It achieved revenue growth of 7.1% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. 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 Dana Incorporated Been A Good Investment?
Given the total loss of 11% over three years, many shareholders in Dana Incorporated are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We examined the amount Dana Incorporated pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.