The CEO of DGR Global Limited (ASX:DGR) is Nick Mather, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether DGR Global pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for DGR Global
How Does Total Compensation For Nick Mather Compare With Other Companies In The Industry?
Our data indicates that DGR Global Limited has a market capitalization of AU$76m, and total annual CEO compensation was reported as AU$314k for the year to June 2020. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is AU$300.0k, represents most of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below AU$259m, we found that the median total CEO compensation was AU$305k. So it looks like DGR Global compensates Nick Mather in line with the median for the industry. Furthermore, Nick Mather directly owns AU$4.6m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$300k | AU$300k | 96% |
| Other | AU$14k | AU$14k | 4% |
| Total Compensation | AU$314k | AU$314k | 100% |
On an industry level, around 69% of total compensation represents salary and 31% is other remuneration. DGR Global has gone down a largely traditional route, paying Nick Mather a high salary, giving it preference over non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at DGR Global Limited's Growth Numbers
Over the last three years, DGR Global Limited has shrunk its earnings per share by 94% per year. Revenue was pretty flat on last year.
Overall this is not a very positive result for shareholders. And the flat revenue hardly impresses. 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 you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has DGR Global Limited Been A Good Investment?
With a three year total loss of 10% for the shareholders, DGR Global Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
To Conclude...
Nick receives almost all of their compensation through a salary. As we touched on above, DGR Global Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 6 warning signs for DGR Global (of which 3 are concerning!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from DGR Global, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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This article by Simply Wall St is general in nature. 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.
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About ASX:DGR
DGR Global
Engages in the exploration and development of mineral properties.
Moderate and slightly overvalued.
