Denis McGlynn has been the CEO of Dover Motorsports, Inc. (NYSE:DVD) since 1979. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Denis McGlynn's Compensation Compare With Similar Sized Companies?
Our data indicates that Dover Motorsports, Inc. is worth US$66m, and total annual CEO compensation was reported as US$337k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$250k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$506k.
Most shareholders would consider it a positive that Denis McGlynn takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Dover Motorsports has changed over time.
Is Dover Motorsports, Inc. Growing?
On average over the last three years, Dover Motorsports, Inc. has grown earnings per share (EPS) by 17% each year (using a line of best fit). It achieved revenue growth of 3.0% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Dover Motorsports, Inc. Been A Good Investment?
With a three year total loss of 7.7%, Dover Motorsports, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Dover Motorsports, Inc. is currently paying its CEO below what is normal for companies of its size.
Since the business is growing, many would argue this suggests the pay is modest. Few would deny that the total shareholder return over the last three years could have been a lot better. We're not critical of the remuneration Denis McGlynn receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Dover Motorsports.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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