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Is DSP Group, Inc.'s (NASDAQ:DSPG) CEO Overpaid Relative To Its Peers?

Simply Wall St

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In 2009 Ofer Elyakim was appointed CEO of DSP Group, Inc. (NASDAQ:DSPG). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.

Check out our latest analysis for DSP Group

How Does Ofer Elyakim's Compensation Compare With Similar Sized Companies?

According to our data, DSP Group, Inc. has a market capitalization of US$321m, and pays its CEO total annual compensation worth US$1.4m. (This number is for the twelve months until December 2018). That's a fairly small increase of 0.02% on year before. While we always look at total compensation first, we note that the salary component is less, at US$330k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.7m.

So Ofer Elyakim receives a similar amount to the median CEO pay, amongst the companies we looked at. 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.

You can see, below, how CEO compensation at DSP Group has changed over time.

NasdaqGS:DSPG CEO Compensation, June 26th 2019

Is DSP Group, Inc. Growing?

DSP Group, Inc. has reduced its earnings per share by an average of 47% a year, over the last three years (measured with a line of best fit). It saw its revenue drop -5.9% over the last year.

Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. 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 DSP Group, Inc. Been A Good Investment?

Boasting a total shareholder return of 41% over three years, DSP Group, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Ofer Elyakim is paid around the same as most CEOs of similar size companies.

We're not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we doubt many are complaining about the fairly normal CEO pay. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling DSP Group (free visualization of insider trades).

If you want to buy a stock that is better than DSP Group, this free list of high return, low debt companies is a great place to look.

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.