Does Dekel Agri-Vision's (LON:DKL) CEO Salary Compare Well With The Performance Of The Company?

The CEO of Dekel Agri-Vision plc (LON:DKL) is Youval Rasin, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Dekel Agri-Vision

How Does Total Compensation For Youval Rasin Compare With Other Companies In The Industry?

At the time of writing, our data shows that Dekel Agri-Vision plc has a market capitalization of UK£9.5m, and reported total annual CEO compensation of €252k for the year to December 2019. That's mostly flat as compared to the prior year's compensation. In particular, the salary of €223.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below UK£153m, we found that the median total CEO compensation was €311k. So it looks like Dekel Agri-Vision compensates Youval Rasin in line with the median for the industry. Moreover, Youval Rasin also holds UK£1.5m worth of Dekel Agri-Vision stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 74% of total compensation represents salary and 26% is other remuneration. According to our research, Dekel Agri-Vision has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Dekel Agri-Vision plc's Growth Numbers

Over the last three years, Dekel Agri-Vision plc has shrunk its earnings per share by 95% per year. Revenue was pretty flat on last year.

Overall this is not a very positive result for shareholders. And the flat revenue is seriously uninspiring. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Dekel Agri-Vision plc Been A Good Investment?

Since shareholders would have lost about 81% over three years, some Dekel Agri-Vision plc investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As previously discussed, Youval is compensated close to the median for companies of its size, and which belong to the same industry. In the meantime, the company has reported declining earnings growth and shareholder returns over the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Dekel Agri-Vision (of which 2 don't sit too well with us!) 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.

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. 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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