Stock Analysis

Does Dolphin International Berhad's (KLSE:DOLPHIN) CEO Pay Matter?

KLSE:OASIS
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Teck Yin Low is the CEO of Dolphin International Berhad (KLSE:DOLPHIN). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Dolphin International Berhad

How Does Teck Yin Low's Compensation Compare With Similar Sized Companies?

According to our data, Dolphin International Berhad has a market capitalization of RM27m, and paid its CEO total annual compensation worth RM387k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at RM315k. We examined a group of similar sized companies, with market capitalizations of below RM828m. The median CEO total compensation in that group is RM618k.

Most shareholders would consider it a positive that Teck Yin Low takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.

You can see, below, how CEO compensation at Dolphin International Berhad has changed over time.

KLSE:DOLPHIN CEO Compensation, December 23rd 2019
KLSE:DOLPHIN CEO Compensation, December 23rd 2019

Is Dolphin International Berhad Growing?

Over the last three years Dolphin International Berhad has shrunk its earnings per share by an average of 2.8% per year (measured with a line of best fit). In the last year, its revenue is up 56%.

As investors, we are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Dolphin International Berhad Been A Good Investment?

With a three year total loss of 71%, Dolphin International Berhad would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

It looks like Dolphin International Berhad pays its CEO less than similar sized companies.

Teck Yin Low receives relatively low remuneration compared to similar sized companies. But the company isn't exactly firing on all cylinders, and returns over three years are not good. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Dolphin International Berhad.

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

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

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