Danny Wallis became the CEO of DWS Limited (ASX:DWS) in 2015. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Danny Wallis's Compensation Compare With Similar Sized Companies?
Our data indicates that DWS Limited is worth AU$144m, and total annual CEO compensation was reported as AU$300k for the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$275k. We examined a group of similar sized companies, with market capitalizations of below AU$300m. The median CEO total compensation in that group is AU$380k.
That means Danny Wallis receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at DWS has changed from year to year.
Is DWS Limited Growing?
On average over the last three years, DWS Limited has shrunk earnings per share by 15% each year (measured with a line of best fit). In the last year, its revenue is up 28%.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has DWS Limited Been A Good Investment?
Since shareholders would have lost about 19% over three years, some DWS Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Danny Wallis is paid around what is normal the leaders of comparable size companies.
The company cannot boast particularly strong per share growth. And we think the shareholder returns - over three years - have been underwhelming. So it would take a bold person to suggest the pay is too modest. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at DWS.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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