Key Insights

• Donnelley Financial Solutions' Annual General Meeting to take place on 15th of May
• CEO Dan Leib's total compensation includes salary of US$815.0k
• Total compensation is similar to the industry average
• Over the past three years, Donnelley Financial Solutions' EPS grew by 181% and over the past three years, the total shareholder return was 153%

It would be hard to discount the role that CEO Dan Leib has played in delivering the impressive results at Donnelley Financial Solutions, Inc. (NYSE:DFIN) recently. Coming up to the next AGM on 15th of May, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

How Does Total Compensation For Dan Leib Compare With Other Companies In The Industry?

According to our data, Donnelley Financial Solutions, Inc. has a market capitalization of US$1.8b, and paid its CEO total annual compensation worth US$6.8m over the year to December 2023. That's a notable decrease of 10% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$815k.

For comparison, other companies in the American Capital Markets industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$6.5m. This suggests that Donnelley Financial Solutions remunerates its CEO largely in line with the industry average. Moreover, Dan Leib also holds US$27m worth of Donnelley Financial Solutions stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 10% of total compensation represents salary and 90% is other remuneration. Donnelley Financial Solutions is paying a higher share of its remuneration through a salary in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Donnelley Financial Solutions, Inc.'s Growth Numbers

Donnelley Financial Solutions, Inc.'s earnings per share (EPS) grew 181% per year over the last three years. It saw its revenue drop 2.3% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Donnelley Financial Solutions, Inc. Been A Good Investment?

We think that the total shareholder return of 153%, over three years, would leave most Donnelley Financial Solutions, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Donnelley Financial Solutions that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.