Temogen Hield became the CEO of DataDot Technology Limited (ASX:DDT) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Temogen Hield’s Compensation Compare With Similar Sized Companies?
Our data indicates that DataDot Technology Limited is worth AU$2m, and total annual CEO compensation is AU$336k. That’s less than last year. We took a group of companies with market capitalizations below AU$281m, and calculated the median CEO compensation to be AU$345k.
So Temogen Hield receives a similar amount to the median CEO pay, amongst the companies we looked at. 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?
DataDot Technology Limited has reduced its earnings per share by an average of 4.4% a year, over the last three years. It saw its revenue drop -8.9% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. 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?
Since shareholders would have lost about 90% over three years, some DataDot Technology Limited shareholders would surely be feeling negative emotions. 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 .
The company isn’t growing EPS, and shareholder returns have been disappointing. Few would argue that it’s wise for the company to pay any more, before returns improve. Whatever your view on compensation, you might want to check if insiders are buying or selling DataDot Technology Limited shares (free trial).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.