Increases to Dolphin Entertainment, Inc.'s (NASDAQ:DLPN) CEO Compensation Might Cool off for now

As many shareholders of Dolphin Entertainment, Inc. (NASDAQ:DLPN) will be aware, they have not made a gain on their investment in the past three years. Per share earnings growth is also poor, despite revenues growing. The AGM coming up on 23 September 2021 will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

See our latest analysis for Dolphin Entertainment

Comparing Dolphin Entertainment, Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that Dolphin Entertainment, Inc. has a market capitalization of US$95m, and reported total annual CEO compensation of US$528k for the year to December 2020. That's a notable decrease of 9.4% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$245k.

In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$290k. Accordingly, our analysis reveals that Dolphin Entertainment, Inc. pays Bill O'Dowd north of the industry median. Moreover, Bill O'Dowd also holds US$4.3m worth of Dolphin Entertainment stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	US$245k	US$300k	46%
Other	US$284k	US$283k	54%
Total Compensation	US$528k	US$583k	100%

On an industry level, around 30% of total compensation represents salary and 70% is other remuneration. According to our research, Dolphin Entertainment has allocated a higher percentage of pay to salary in comparison to the wider industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Dolphin Entertainment, Inc.'s Growth Numbers

Dolphin Entertainment, Inc. has reduced its earnings per share by 23% a year over the last three years. Its revenue is up 16% over the last year.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Dolphin Entertainment, Inc. Been A Good Investment?

Since shareholders would have lost about 2.9% over three years, some Dolphin Entertainment, Inc. investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Dolphin Entertainment that investors should think about before committing capital to this stock.

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.

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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.
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