It's Unlikely That Destination XL Group, Inc.'s (NASDAQ:DXLG) CEO Will See A Huge Pay Rise This Year

Key Insights

• Destination XL Group's Annual General Meeting to take place on 8th of August
• Salary of US$866.3k is part of CEO Harvey Kanter's total remuneration
• The overall pay is 359% above the industry average
• Destination XL Group's EPS grew by 9.1% over the past three years while total shareholder loss over the past three years was 24%

The underwhelming share price performance of Destination XL Group, Inc. (NASDAQ:DXLG) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 8th of August could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Destination XL Group

How Does Total Compensation For Harvey Kanter Compare With Other Companies In The Industry?

Our data indicates that Destination XL Group, Inc. has a market capitalization of US$217m, and total annual CEO compensation was reported as US$6.0m for the year to February 2024. That's a notable increase of 41% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$866k.

In comparison with other companies in the American Specialty Retail industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$1.3m. Hence, we can conclude that Harvey Kanter is remunerated higher than the industry median. Moreover, Harvey Kanter also holds US$1.6m worth of Destination XL Group stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	US$866k	US$831k	15%
Other	US$5.1m	US$3.4m	85%
Total Compensation	US$6.0m	US$4.2m	100%

On an industry level, around 16% of total compensation represents salary and 84% is other remuneration. Although there is a difference in how total compensation is set, Destination XL Group more or less reflects the market in terms of setting the salary. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Destination XL Group, Inc.'s Growth

Over the past three years, Destination XL Group, Inc. has seen its earnings per share (EPS) grow by 9.1% per year. It saw its revenue drop 5.8% over the last year.

We generally like to see a little revenue growth, but the modest improvement in EPS is good. 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Destination XL Group, Inc. Been A Good Investment?

Given the total shareholder loss of 24% over three years, many shareholders in Destination XL Group, Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

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 1 warning sign for Destination XL Group that you should be aware of before investing.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com