Is Dekel Agri-Vision plc (LON:DKL) Overpaying Its CEO?
The CEO of Dekel Agri-Vision plc (LON:DKL) is Youval Rasin. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Dekel Agri-Vision
How Does Youval Rasin's Compensation Compare With Similar Sized Companies?
Our data indicates that Dekel Agri-Vision plc is worth UK£12m, and total annual CEO compensation was reported as €252k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €224k. We took a group of companies with market capitalizations below €183m, and calculated the median CEO total compensation to be €297k.
That means Youval Rasin receives fairly typical remuneration for the CEO of a company that size. 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.
The graphic below shows how CEO compensation at Dekel Agri-Vision has changed from year to year.
Is Dekel Agri-Vision plc Growing?
On average over the last three years, Dekel Agri-Vision plc has shrunk earnings per share by 101% each year (measured with a line of best fit). It saw its revenue drop 14% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. 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. It could be important to check this free visual depiction of what analysts expect for the future.
Has Dekel Agri-Vision plc Been A Good Investment?
Since shareholders would have lost about 76% over three years, some Dekel Agri-Vision plc shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Youval Rasin is paid around the same as most CEOs of similar size companies.
Returns have been disappointing and the company is not growing its earnings per share. Few would argue that it's wise for the company to pay any more, before returns improve. So you may want to check if insiders are buying Dekel Agri-Vision shares with their own money (free access).
If you want to buy a stock that is better than Dekel Agri-Vision, this free list of high return, low debt companies is a great place to look.
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.
