David Levin became the CEO of Destination XL Group, Inc. (NASDAQ:DXLG) in 2000. First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.
Want to help shape the future of investing tools and platforms? Take the survey and be part of one of the most advanced studies of stock market investors to date.
How Does David Levin’s Compensation Compare With Similar Sized Companies?
Our data indicates that Destination XL Group, Inc. is worth US$128m, and total annual CEO compensation is US$1.7m. (This figure is for the year to 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$827k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$300k.
As you can see, David Levin is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Destination XL Group, Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Destination XL Group has changed from year to year.
Is Destination XL Group, Inc. Growing?
Over the last three years Destination XL Group, Inc. has shrunk its earnings per share by an average of 33% per year. Its revenue is up 4.9% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. 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 Destination XL Group, Inc. Been A Good Investment?
Given the total loss of 41% over three years, many shareholders in Destination XL Group, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Destination XL Group, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
Over the same period, investors would have come away with nothing in the way of share price gains. This analysis suggests to us that the CEO is paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Destination XL Group.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.