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This article will reflect on the compensation paid to Bill O'Dowd who has served as CEO of Dolphin Entertainment, Inc. (NASDAQ:DLPN) since 2008. This analysis will also assess whether Dolphin Entertainment pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Comparing Dolphin Entertainment, Inc.'s CEO Compensation With the industry
Our data indicates that Dolphin Entertainment, Inc. has a market capitalization of US$34m, and total annual CEO compensation was reported as US$583k for the year to December 2019. We note that's an increase of 10% above last year. Notably, the salary which is US$300.0k, represents most of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$320k. This suggests that Bill O'Dowd is paid more than the median for the industry. What's more, Bill O'Dowd holds US$1.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
On an industry level, roughly 23% of total compensation represents salary and 77% is other remuneration. Dolphin Entertainment pays out 51% of remuneration in the form of a salary, significantly higher than the industry average. 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.
A Look at Dolphin Entertainment, Inc.'s Growth Numbers
Dolphin Entertainment, Inc.'s earnings per share (EPS) grew 110% per year over the last three years. Its revenue is up 9.6% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Dolphin Entertainment, Inc. Been A Good Investment?
With a three year total loss of 89% for the shareholders, Dolphin Entertainment, Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As we touched on above, Dolphin Entertainment, Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, the earnings per share growth is certainly impressive, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 5 warning signs for Dolphin Entertainment you should be aware of, and 2 of them don't sit too well with us.
Switching gears from Dolphin Entertainment, 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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