DENTSPLY SIRONA Inc.'s (NASDAQ:XRAY) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• DENTSPLY SIRONA to hold its Annual General Meeting on 21st of May
• Total pay for CEO Simon Campion includes US$1.02m salary
• The overall pay is comparable to the industry average
• DENTSPLY SIRONA's three-year loss to shareholders was 53% while its EPS was down 30% over the past three years

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Shareholders will probably not be too impressed with the underwhelming results at DENTSPLY SIRONA Inc. (NASDAQ:XRAY) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 21st of May. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for DENTSPLY SIRONA

How Does Total Compensation For Simon Campion Compare With Other Companies In The Industry?

Our data indicates that DENTSPLY SIRONA Inc. has a market capitalization of US$3.3b, and total annual CEO compensation was reported as US$8.7m for the year to December 2024. This means that the compensation hasn't changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.

For comparison, other companies in the American Medical Equipment industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$9.2m. From this we gather that Simon Campion is paid around the median for CEOs in the industry. Moreover, Simon Campion also holds US$2.3m worth of DENTSPLY SIRONA stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	US$1.0m	US$1.0m	12%
Other	US$7.7m	US$7.5m	88%
Total Compensation	US$8.7m	US$8.5m	100%

Talking in terms of the industry, salary represented approximately 25% of total compensation out of all the companies we analyzed, while other remuneration made up 75% of the pie. It's interesting to note that DENTSPLY SIRONA allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at DENTSPLY SIRONA Inc.'s Growth Numbers

Over the last three years, DENTSPLY SIRONA Inc. has shrunk its earnings per share by 30% per year. It saw its revenue drop 5.6% over the last year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has DENTSPLY SIRONA Inc. Been A Good Investment?

The return of -53% over three years would not have pleased DENTSPLY SIRONA Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

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, the board will get the chance to explain the steps it plans to take to improve business performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for DENTSPLY SIRONA that you should be aware of before investing.

Important note: DENTSPLY SIRONA is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.