A data path optimization element is used in a behavioral synthesis process to optimize portions of an algorithmic description of a digital logic circuit. Directives are provided in the algorithmic description to identify subsets of the algorithmic description that can be extracted and optimized. The optimization includes identification of certain operators, function calls, conditional statements, or other relationships in the subset, and then compression of the extracted subset into or more data path components in a building block. The building block thus generated is substituted back into the algorithmic description and used in subsequent operations during the behavioral synthesis process, thereby leading to a more optimum design in terms of area, performance, power characteristics, or other characteristic(s).