Yahoo Finance Should You Worry About DigitalX Limited's (ASX:DCC) CEO Pay?
Leigh Travers became the CEO of DigitalX Limited (ASX:DCC) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for DigitalX
How Does Leigh Travers's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that DigitalX Limited has a market cap of AU$14m, and reported total annual CEO compensation of US$192k for the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at US$140k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$257k.
So Leigh Travers is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at DigitalX has changed over time.
Is DigitalX Limited Growing?
DigitalX Limited has increased its earnings per share (EPS) by an average of 8.8% a year, over the last three years (using a line of best fit). It saw its revenue drop 92% over the last year.
I generally like to see a little revenue growth, but the improvement in EPS is good. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has DigitalX Limited Been A Good Investment?
With a three year total loss of 50%, DigitalX Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Leigh Travers is paid around the same as most CEOs of similar size companies.
The per share growth could be better, in our view. And we think the shareholder returns - over three years - have been underwhelming. So suffice it to say we don't think the compensation is modest. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling DigitalX (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
