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How Much Is Dillistone Group Plc (LON:DSG) Paying Its CEO?

Jason Starr is the CEO of Dillistone Group Plc (LON:DSG), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Dillistone Group.

See our latest analysis for Dillistone Group

Comparing Dillistone Group Plc's CEO Compensation With the industry

According to our data, Dillistone Group Plc has a market capitalization of UK£3.1m, and paid its CEO total annual compensation worth UK£133k over the year to December 2019. That is, the compensation was roughly the same as last year. In particular, the salary of UK£124.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under UK£153m, the reported median total CEO compensation was UK£256k. In other words, Dillistone Group pays its CEO lower than the industry median. Furthermore, Jason Starr directly owns UK£572k worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2019

2018

Proportion (2019)

Salary

UK£124k

UK£124k

93%

Other

UK£9.0k

UK£9.0k

7%

Total Compensation

UK£133k

UK£133k

100%

On an industry level, roughly 66% of total compensation represents salary and 34% is other remuneration. According to our research, Dillistone Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

ceo-compensation
ceo-compensation

A Look at Dillistone Group Plc's Growth Numbers

Dillistone Group Plc has reduced its earnings per share by 123% a year over the last three years. Its revenue is down 7.7% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Dillistone Group Plc Been A Good Investment?

Given the total shareholder loss of 71% over three years, many shareholders in Dillistone Group Plc are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we touched on above, Dillistone Group Plc is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. EPS growth has failed to impress us, and the same can be said about shareholder returns. Although we wouldn’t say CEO compensation is high, it’s tough to foresee shareholders warming up to thoughts of a bump anytime soon.

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 Dillistone Group (of which 2 are concerning!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Dillistone Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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