Is Dolphin Entertainment, Inc. (NASDAQ:DLPN) Overpaying Its CEO?

Bill O’Dowd has been the CEO of Dolphin Entertainment, Inc. (NASDAQ:DLPN) since 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Dolphin Entertainment

How Does Bill O’Dowd’s Compensation Compare With Similar Sized Companies?

Our data indicates that Dolphin Entertainment, Inc. is worth US$11m, and total annual CEO compensation was reported as US$529k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$250k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$523k.

So Bill O’Dowd receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Dolphin Entertainment, below.

NasdaqCM:DLPN CEO Compensation, January 27th 2020
NasdaqCM:DLPN CEO Compensation, January 27th 2020

Is Dolphin Entertainment, Inc. Growing?

Dolphin Entertainment, Inc. has increased its earnings per share (EPS) by an average of 121% a year, over the last three years (using a line of best fit). Its revenue is up 1.7% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.

Has Dolphin Entertainment, Inc. Been A Good Investment?

Given the total loss of 94% over three years, many shareholders in Dolphin Entertainment, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

Bill O’Dowd is paid around the same as most CEOs of similar size companies.

We like that the company is growing EPS, but we find the returns over the last three years to be lacking. We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. Whatever your view on compensation, you might want to check if insiders are buying or selling Dolphin Entertainment shares (free trial).

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.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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