Is Dillistone Group Plc's (LON:DSG) CEO Being Overpaid?

Simply Wall St

The CEO of Dillistone Group Plc (LON:DSG) is Jason Starr. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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.

See our latest analysis for Dillistone Group

How Does Jason Starr's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Dillistone Group Plc has a market cap of UK£6.2m, and reported total annual CEO compensation of UK£133k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at UK£124k. We took a group of companies with market capitalizations below UK£154m, and calculated the median CEO total compensation to be UK£252k.

A first glance this seems like a real positive for shareholders, since Jason Starr is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.

You can see a visual representation of the CEO compensation at Dillistone Group, below.

AIM:DSG CEO Compensation, January 14th 2020

Is Dillistone Group Plc Growing?

On average over the last three years, Dillistone Group Plc has shrunk earnings per share by 133% each year (measured with a line of best fit). Its revenue is down 9.3% over last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.

Has Dillistone Group Plc Been A Good Investment?

Given the total loss of 65% over three years, many shareholders in Dillistone Group Plc are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Dillistone Group Plc is currently paying its CEO below what is normal for companies of its size.

The compensation paid to Jason Starr is lower than is usual at similar sized companies, but the eps growth is lacking, just like the returns (over three years). Considering all these factors, we'd stop short of saying the CEO pay is too high, but we don't think shareholders would want to see a pay rise before business performance improves. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Dillistone Group.

If you want to buy a stock that is better than Dillistone Group, 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.

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