Shareholders May Not Be So Generous With Dexus' (ASX:DXS) CEO Compensation And Here's Why

CEO Darren Steinberg has done a decent job of delivering relatively good performance at Dexus (ASX:DXS) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 19 October 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Dexus

How Does Total Compensation For Darren Steinberg Compare With Other Companies In The Industry?

According to our data, Dexus has a market capitalization of AU$11b, and paid its CEO total annual compensation worth AU$5.2m over the year to June 2021. We note that's an increase of 22% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$1.6m.

For comparison, other companies in the same industry with market capitalizations ranging between AU$5.4b and AU$16b had a median total CEO compensation of AU$2.8m. Hence, we can conclude that Darren Steinberg is remunerated higher than the industry median. Moreover, Darren Steinberg also holds AU$13m worth of Dexus stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2021	2020	Proportion (2021)
Salary	AU$1.6m	AU$1.5m	30%
Other	AU$3.6m	AU$2.8m	70%
Total Compensation	AU$5.2m	AU$4.3m	100%

On an industry level, around 45% of total compensation represents salary and 55% is other remuneration. It's interesting to note that Dexus allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Dexus' Growth Numbers

Over the past three years, Dexus has seen its funds from operations (FFO) grow by 3.1% per year. In the last year, its revenue is up 6.4%.

We're not particularly impressed by the revenue growth, but we're happy with the modest FFO growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Dexus Been A Good Investment?

Dexus has served shareholders reasonably well, with a total return of 18% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for Dexus (1 is potentially serious!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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