Shareholders May Be More Conservative With DHI Group, Inc.'s (NYSE:DHX) CEO Compensation For Now
Key Insights
- DHI Group will host its Annual General Meeting on 16th of May
- Salary of US$577.5k is part of CEO Art Zeile's total remuneration
- Total compensation is 572% above industry average
- DHI Group's three-year loss to shareholders was 73% while its EPS grew by 24% over the past three years
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. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 16th of May could be an opportunity for shareholders to bring these concerns to the board's attention. 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
How Does Total Compensation For Art Zeile Compare With Other Companies In The Industry?
At the time of writing, our data shows that DHI Group, Inc. has a market capitalization of US$62m, and reported total annual CEO compensation of US$2.9m for the year to December 2024. We note that's a decrease of 24% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$578k.
On comparing similar-sized companies in the American Interactive Media and Services industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$434k. Accordingly, our analysis reveals that DHI Group, Inc. pays Art Zeile north of the industry median. Furthermore, Art Zeile directly owns US$4.7m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$578k | US$578k | 20% |
| Other | US$2.3m | US$3.2m | 80% |
| Total Compensation | US$2.9m | US$3.8m | 100% |
Speaking on an industry level, nearly 11% of total compensation represents salary, while the remainder of 89% is other remuneration. DHI Group pays out 20% of remuneration in the form of a salary, significantly higher than the industry average. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at DHI Group, Inc.'s Growth Numbers
DHI Group, Inc. has seen its earnings per share (EPS) increase by 24% a year over the past three years. It saw its revenue drop 6.6% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has DHI Group, Inc. Been A Good Investment?
Few DHI Group, Inc. shareholders would feel satisfied with the return of -73% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 5 warning signs for DHI Group (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the 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.
Valuation is complex, but we're here to simplify it.
Discover if DHI Group might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.