This Is The Reason Why We Think DENTSPLY SIRONA Inc.'s (NASDAQ:XRAY) CEO Deserves A Bump Up To Their Compensation

By
Simply Wall St
Published
May 19, 2021
NasdaqGS:XRAY
Source: Shutterstock

The impressive results at DENTSPLY SIRONA Inc. (NASDAQ:XRAY) recently will be great news for shareholders. At the upcoming AGM on 26 May 2021, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Check out our latest analysis for DENTSPLY SIRONA

How Does Total Compensation For Don Casey Compare With Other Companies In The Industry?

At the time of writing, our data shows that DENTSPLY SIRONA Inc. has a market capitalization of US$15b, and reported total annual CEO compensation of US$7.2m for the year to December 2020. Notably, that's a decrease of 37% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$777k.

For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$10m. This suggests that Don Casey is paid below the industry median. Furthermore, Don Casey directly owns US$9.3m worth of shares in the company, implying that they are deeply invested in the company's success.

Component20202019Proportion (2020)
Salary US$777k US$925k 11%
Other US$6.4m US$10m 89%
Total CompensationUS$7.2m US$11m100%

Talking in terms of the industry, salary represented approximately 21% of total compensation out of all the companies we analyzed, while other remuneration made up 79% of the pie. DENTSPLY SIRONA pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
NasdaqGS:XRAY CEO Compensation May 20th 2021

DENTSPLY SIRONA Inc.'s Growth

DENTSPLY SIRONA Inc. has seen its earnings per share (EPS) increase by 107% a year over the past three years. It saw its revenue drop 12% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has DENTSPLY SIRONA Inc. Been A Good Investment?

Boasting a total shareholder return of 49% over three years, DENTSPLY SIRONA Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for DENTSPLY SIRONA that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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