Yahoo Finance Does Data#3 Limited’s (ASX:DTL) CEO Pay Reflect Performance?
In 2014 Laurence Baynham was appointed CEO of Data#3 Limited (ASX:DTL). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Data#3
How Does Laurence Baynham’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Data#3 Limited has a market cap of AU$239m, and is paying total annual CEO compensation of AU$880k. That’s actually a decrease on the year before. When we examined a selection of companies with market caps ranging from AU$138m to AU$553m, we found the median CEO compensation was AU$757k.
That means Laurence Baynham receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Data#3 has changed from year to year.
Is Data#3 Limited Growing?
Data#3 Limited has increased its earnings per share (EPS) by an average of 7.3% a year, over the last three years Its revenue is up 7.6% over last year.
I’m not particularly impressed by the revenue growth, but I’m happy with the modest EPS growth. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Data#3 Limited Been A Good Investment?
I think that the total shareholder return of 71%, over three years, would leave most Data#3 Limited shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
Laurence Baynham is paid around the same as most CEOs of similar size companies.
While the growth could be better, the shareholder returns are clearly good. So considering most shareholders would be happy, we’d say the CEO pay is appropriate.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
