Yahoo Finance Is Dropsuite Limited's (ASX:DSE) CEO Paid Enough Relative To Peers?
The CEO of Dropsuite Limited (ASX:DSE) is Charif Elansari. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Dropsuite
How Does Charif Elansari's Compensation Compare With Similar Sized Companies?
According to our data, Dropsuite Limited has a market capitalization of AU$33m, and paid its CEO total annual compensation worth AU$354k over the year to December 2019. That's actually a decrease on the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$250k. We examined a group of similar sized companies, with market capitalizations of below AU$306m. The median CEO total compensation in that group is AU$383k.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On a sector level, around 67% of total compensation represents salary and 33% is other remuneration. Dropsuite is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation
So Charif Elansari receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 Dropsuite has changed from year to year.
Is Dropsuite Limited Growing?
Over the last three years Dropsuite Limited has seen earnings per share (EPS) move in a positive direction by an average of 133% per year (using a line of best fit). It saw its revenue drop 11% over the last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Dropsuite Limited Been A Good Investment?
Given the total loss of 6.5% over three years, many shareholders in Dropsuite 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...
Charif Elansari is paid around what is normal for the leaders of comparable size companies.
We like that the company is growing EPS, but it's disappointing to see negative shareholder returns over three years. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. Shifting gears from CEO pay for a second, we've picked out 4 warning signs for Dropsuite that investors should be aware of in a dynamic business environment.
If you want to buy a stock that is better than Dropsuite, this free list of high return, low debt companies is a great place to look.
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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. Thank you for reading.
