Increases to DHI Group, Inc.'s (NYSE:DHX) CEO Compensation Might Cool off for now

Key Insights

• DHI Group will host its Annual General Meeting on 25th of April
• Total pay for CEO Art Zeile includes US$577.5k salary
• The total compensation is 736% higher than the average for the industry
• Over the past three years, DHI Group's EPS grew by 134% and over the past three years, the total loss to shareholders 25%

In the past three years, the share price of DHI Group, Inc. (NYSE:DHX) has struggled to grow and now shareholders are sitting on a loss. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 25th of April. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for DHI Group

Comparing DHI Group, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that DHI Group, Inc. has a market capitalization of US$106m, and reported total annual CEO compensation of US$3.8m for the year to December 2023. Notably, that's an increase of 18% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$578k.

In comparison with other companies in the American Interactive Media and Services industry with market capitalizations under US$200m, the reported median total CEO compensation was US$457k. This suggests that Art Zeile is paid more than the median for the industry. What's more, Art Zeile holds US$7.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$578k	US$550k	15%
Other	US$3.2m	US$2.7m	85%
Total Compensation	US$3.8m	US$3.3m	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 DHI Group 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.

DHI Group, Inc.'s Growth

Over the past three years, DHI Group, Inc. has seen its earnings per share (EPS) grow by 134% per year. Its revenue is up 1.5% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 DHI Group, Inc. Been A Good Investment?

Since shareholders would have lost about 25% over three years, some DHI Group, Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 3 warning signs for DHI Group (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.

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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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.