What Can We Learn About Diurnal Group's (LON:DNL) CEO Compensation?

Martin Whitaker is the CEO of Diurnal Group plc (LON:DNL), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Diurnal Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Diurnal Group

How Does Total Compensation For Martin Whitaker Compare With Other Companies In The Industry?

According to our data, Diurnal Group plc has a market capitalization of UK£85m, and paid its CEO total annual compensation worth UK£512k over the year to June 2020. We note that's an increase of 58% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£255k.

For comparison, other companies in the industry with market capitalizations below UK£146m, reported a median total CEO compensation of UK£290k. Hence, we can conclude that Martin Whitaker is remunerated higher than the industry median. Furthermore, Martin Whitaker directly owns UK£365k worth of shares in the company.

Speaking on an industry level, nearly 66% of total compensation represents salary, while the remainder of 34% is other remuneration. Diurnal Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Diurnal Group plc's Growth Numbers

Diurnal Group plc's earnings per share (EPS) grew 26% per year over the last three years. In the last year, its revenue is up 502%.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Diurnal Group plc Been A Good Investment?

Since shareholders would have lost about 64% over three years, some Diurnal Group plc investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we touched on above, Diurnal Group plc is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, the EPS growth is certainly impressive, but shareholder returns — over the same period — have been disappointing. Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Diurnal Group that investors should look into moving forward.

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.

If you decide to trade Diurnal Group, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.