Yahoo Finance Our Take On Hertz Global Holdings, Inc.'s (NYSE:HTZ) CEO Salary
In 2017 Kathy Marinello was appointed CEO of Hertz Global Holdings, Inc. (NYSE:HTZ). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Hertz Global Holdings
How Does Kathy Marinello's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Hertz Global Holdings, Inc. has a market cap of US$2.0b, and reported total annual CEO compensation of US$8.0m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$1.5m. 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$1.0b to US$3.2b, and the median CEO total compensation was US$4.0m.
As you can see, Kathy Marinello is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Hertz Global Holdings, Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Hertz Global Holdings has changed from year to year.
Is Hertz Global Holdings, Inc. Growing?
On average over the last three years, Hertz Global Holdings, Inc. has grown earnings per share (EPS) by 38% each year (using a line of best fit). In the last year, its revenue is up 6.1%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has Hertz Global Holdings, Inc. Been A Good Investment?
Given the total loss of 49% over three years, many shareholders in Hertz Global Holdings, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We examined the amount Hertz Global Holdings, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if Hertz Global Holdings insiders are buying or selling shares.
Important note: Hertz Global 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.
