Should Shareholders Reconsider Dekel Agri-Vision plc's (LON:DKL) CEO Compensation Package?

Shareholders will probably not be too impressed with the underwhelming results at Dekel Agri-Vision plc (LON:DKL) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 05 August 2021. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Dekel Agri-Vision

Comparing Dekel Agri-Vision plc's CEO Compensation With the industry

At the time of writing, our data shows that Dekel Agri-Vision plc has a market capitalization of UK£25m, and reported total annual CEO compensation of €185k for the year to December 2020. That's a notable decrease of 27% on last year. We note that the salary portion, which stands at €154.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below UK£143m, reported a median total CEO compensation of €251k. This suggests that Dekel Agri-Vision remunerates its CEO largely in line with the industry average. What's more, Youval Rasin holds UK£3.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	€154k	€223k	83%
Other	€31k	€29k	17%
Total Compensation	€185k	€252k	100%

On an industry level, roughly 70% of total compensation represents salary and 30% is other remuneration. Dekel Agri-Vision pays out 83% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Dekel Agri-Vision plc's Growth

Over the last three years, Dekel Agri-Vision plc has shrunk its earnings per share by 31% per year. In the last year, its revenue is up 7.6%.

Overall this is not a very positive result for shareholders. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Dekel Agri-Vision plc Been A Good Investment?

Given the total shareholder loss of 2.1% over three years, many shareholders in Dekel Agri-Vision plc are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which is a bit unpleasant) in Dekel Agri-Vision we think you should know about.

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.

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