Yahoo Finance Is Decmil Group Limited's (ASX:DCG) CEO Overpaid Relative To Its Peers?
Scott Criddle became the CEO of Decmil Group Limited (ASX:DCG) in 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Decmil Group
How Does Scott Criddle's Compensation Compare With Similar Sized Companies?
According to our data, Decmil Group Limited has a market capitalization of AU$117m, and paid its CEO total annual compensation worth AU$818k over the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$605k. We examined a group of similar sized companies, with market capitalizations of below AU$285m. The median CEO total compensation in that group is AU$379k.
Thus we can conclude that Scott Criddle receives more in total compensation than the median of a group of companies in the same market, and of similar size to Decmil Group Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Decmil Group, below.
Is Decmil Group Limited Growing?
Decmil Group Limited has increased its earnings per share (EPS) by an average of 108% a year, over the last three years (using a line of best fit). It achieved revenue growth of 94% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Decmil Group Limited Been A Good Investment?
With a three year total loss of 50%, Decmil Group Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared total CEO remuneration at Decmil Group Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. So you may want to check if insiders are buying Decmil Group shares with their own money (free access).
Important note: Decmil Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
