Temogen Hield has been the CEO of DataDot Technology Limited (ASX:DDT) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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.
How Does Temogen Hield’s Compensation Compare With Similar Sized Companies?
According to our data, DataDot Technology Limited has a market capitalization of AU$6.5m, and pays its CEO total annual compensation worth AU$336k. (This is based on the year to June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$251k. We looked at a group of companies with market capitalizations under AU$279m, and the median CEO total compensation was AU$354k.
That means Temogen Hield receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at DataDot Technology has changed over time.
Is DataDot Technology Limited Growing?
On average over the last three years, DataDot Technology Limited has shrunk earnings per share by 2.6% each year (measured with a line of best fit). Its revenue is down -17% over last year.
The lack of earnings per share growth in the last three years is unimpressive. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has DataDot Technology Limited Been A Good Investment?
Given the total loss of 58% over three years, many shareholders in DataDot Technology Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
Remuneration for Temogen Hield is close enough to the median pay for a CEO of a similar sized company .
After looking at EPS and total shareholder returns, it’s certainly hard to argue the company has performed well, since both metrics are down. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. Shareholders may want to check for free if DataDot Technology insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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