The CEO of Dillistone Group Plc (LON:DSG) is Jason Starr, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Dillistone Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for Dillistone Group
How Does Total Compensation For Jason Starr Compare With Other Companies In The Industry?
According to our data, Dillistone Group Plc has a market capitalization of UK£3.1m, and paid its CEO total annual compensation worth UK£133k over the year to December 2019. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at UK£124.0k constitutes the majority of total compensation received by the CEO.
On comparing similar-sized companies in the industry with market capitalizations below UK£148m, we found that the median total CEO compensation was UK£252k. Accordingly, Dillistone Group pays its CEO under the industry median. Moreover, Jason Starr also holds UK£572k worth of Dillistone Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2019 | 2018 | Proportion (2019) |
Salary | UK£124k | UK£124k | 93% |
Other | UK£9.0k | UK£9.0k | 7% |
Total Compensation | UK£133k | UK£133k | 100% |
Speaking on an industry level, nearly 68% of total compensation represents salary, while the remainder of 32% is other remuneration. It's interesting to note that Dillistone Group pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Dillistone Group Plc's Growth Numbers
Over the last three years, Dillistone Group Plc has shrunk its earnings per share by 91% per year. Its revenue is down 14% over the previous year.
Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Dillistone Group Plc Been A Good Investment?
With a three year total loss of 75% for the shareholders, Dillistone Group Plc would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
As we touched on above, Dillistone Group Plc is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. EPS growth has failed to impress us, and the same can be said about shareholder returns. We can't say the CEO compensation is high, but shareholders will be cold to a bump at this stage, considering negative investor returns.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 3 warning signs for Dillistone Group (2 are a bit concerning!) that you should be aware of before investing here.
Switching gears from Dillistone Group, 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 AIM:DSG
Dillistone Group
Provides technology solutions and services in the United Kingdom, rest of Europe, the Americas, Australia, and internationally.
Undervalued with imperfect balance sheet.