Yahoo Finance How Does Dragontail Systems' (ASX:DTS) CEO Salary Compare to Peers?
This article will reflect on the compensation paid to Ido Levanon who has served as CEO of Dragontail Systems Limited (ASX:DTS) since 2016. This analysis will also assess whether Dragontail Systems pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for Dragontail Systems
How Does Total Compensation For Ido Levanon Compare With Other Companies In The Industry?
According to our data, Dragontail Systems Limited has a market capitalization of AU$30m, and paid its CEO total annual compensation worth US$130k over the year to December 2019. Notably, that's an increase of 30% over the year before. Notably, the salary of US$130k is the entirety of the CEO compensation.
For comparison, other companies in the industry with market capitalizations below AU$282m, reported a median total CEO compensation of US$244k. Accordingly, Dragontail Systems pays its CEO under the industry median. What's more, Ido Levanon holds AU$2.4m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$130k | US$100k | 100% |
Other | - | - | - |
Total Compensation | US$130k | US$100k | 100% |
On an industry level, around 60% of total compensation represents salary and 40% is other remuneration. At the company level, Dragontail Systems pays Ido Levanon solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Dragontail Systems Limited's Growth Numbers
Over the last three years, Dragontail Systems Limited has shrunk its earnings per share by 7.4% per year. Its revenue is down 48% over the previous year.
Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Dragontail Systems Limited Been A Good Investment?
Given the total shareholder loss of 59% over three years, many shareholders in Dragontail Systems Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Dragontail Systems rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, Dragontail Systems Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Over the last three years, shareholder returns have been downright disappointing, and EPSgrowth has been equally disappointing. 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 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 6 warning signs for Dragontail Systems (of which 3 don't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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