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Is Dillistone Group Plc's (LON:DSG) CEO Paid At A Competitive Rate?

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. 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 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£6.0m, and is paying total annual CEO compensation of UK£133k. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£124k. We examined a group of similar sized companies, with market capitalizations of below UK£165m. The median CEO total compensation in that group is UK£251k.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

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

AIM:DSG CEO Compensation, August 6th 2019

Is Dillistone Group Plc Growing?

On average over the last three years, Dillistone Group Plc has shrunk earnings per share by 116% each year (measured with a line of best fit). In the last year, its revenue is down -11%.

Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.

Has Dillistone Group Plc Been A Good Investment?

Given the total loss of 62% 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...

It appears that Dillistone Group Plc remunerates its CEO below most similar sized companies.

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. Shareholders may want to check for free if Dillistone Group insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.