Ofer Elyakim became the CEO of DSP Group Inc (NASDAQ:DSPG) in 2009. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Ofer Elyakim’s Compensation Compare With Similar Sized Companies?
According to our data, DSP Group Inc has a market capitalization of US$279m, and pays its CEO total annual compensation worth US$1m. That’s a modest increase of 6.0% on the prior year year. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO compensation of that group was US$919k.
Thus we can conclude that Ofer Elyakim receives more in total compensation than the median of a group of companies in the same market, and of similar size to DSP Group Inc. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at DSP Group has changed over time.
Is DSP Group Inc Growing?
DSP Group Inc has reduced its earnings per share by an average of 53% a year, over the last three years. In the last year, its revenue is down -4.8%.
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. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has DSP Group Inc Been A Good Investment?
DSP Group Inc has served shareholders reasonably well, with a total return of 26% over three years. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared total CEO remuneration at DSP Group Inc with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
While shareholder returns are acceptable, they don’t delight. So we doubt many shareholders would consider the CEO pay to be particularly modest! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling DSP Group Inc (free visualization of insider trades).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
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 firstname.lastname@example.org.