Stock Analysis

Here's What We Think About Dimerix's (ASX:DXB) CEO Pay

ASX:DXB
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This article will reflect on the compensation paid to Nina Webster who has served as CEO of Dimerix Limited (ASX:DXB) since 2018. This analysis will also assess whether Dimerix pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Dimerix

Comparing Dimerix Limited's CEO Compensation With the industry

According to our data, Dimerix Limited has a market capitalization of AU$57m, and paid its CEO total annual compensation worth AU$539k over the year to June 2020. We note that's an increase of 11% above last year. In particular, the salary of AU$303.9k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below AU$261m, we found that the median total CEO compensation was AU$444k. So it looks like Dimerix compensates Nina Webster in line with the median for the industry.

Component20202019Proportion (2020)
Salary AU$304k AU$221k 56%
Other AU$235k AU$264k 44%
Total CompensationAU$539k AU$486k100%

Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. Dimerix pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
ASX:DXB CEO Compensation February 1st 2021

A Look at Dimerix Limited's Growth Numbers

Dimerix Limited saw earnings per share stay pretty flat over the last three years. Its revenue is up 62% over the last year.

We like the look of the strong year-on-year improvement in revenue. And in that context, the modest EPS improvement certainly isn't shabby. We wouldn't say this is necessarily top notch growth, but it is certainly promising. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Dimerix Limited Been A Good Investment?

Boasting a total shareholder return of 150% over three years, Dimerix Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

As we noted earlier, Dimerix pays its CEO in line with similar-sized companies belonging to the same industry. But the business isn't reporting great numbers in terms of EPS growth. On the other hand, shareholder returns over the same period have been very healthy. There is room for improved company performance, but we don't see the CEO compensation as a big issue here.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 5 warning signs for Dimerix you should be aware of, and 1 of them is a bit concerning.

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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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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