Key Insights

• H&E Equipment Services' Annual General Meeting to take place on 16th of May

• Total pay for CEO Brad Barber includes US$907.7k salary

• The overall pay is 67% above the industry average

• H&E Equipment Services' EPS grew by 66% over the past three years while total shareholder return over the past three years was 40%

Under the guidance of CEO Brad Barber, H&E Equipment Services, Inc. (NASDAQ:HEES) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 16th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for H&E Equipment Services

How Does Total Compensation For Brad Barber Compare With Other Companies In The Industry?

Our data indicates that H&E Equipment Services, Inc. has a market capitalization of US$1.7b, and total annual CEO compensation was reported as US$6.3m for the year to December 2023. We note that's an increase of 18% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$908k.

For comparison, other companies in the American Trade Distributors industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$3.8m. Hence, we can conclude that Brad Barber is remunerated higher than the industry median. Moreover, Brad Barber also holds US$9.6m worth of H&E Equipment Services stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 17% of total compensation out of all the companies we analyzed, while other remuneration made up 83% of the pie. It's interesting to note that H&E Equipment Services allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at H&E Equipment Services, Inc.'s Growth Numbers

H&E Equipment Services, Inc. has seen its earnings per share (EPS) increase by 66% a year over the past three years. It achieved revenue growth of 17% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 H&E Equipment Services, Inc. Been A Good Investment?

We think that the total shareholder return of 40%, over three years, would leave most H&E Equipment Services, Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for H&E Equipment Services that you should be aware of before investing.

Important note: H&E Equipment Services is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.