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Pat McCann has been the CEO of Dalata Hotel Group plc (ISE:DHG) since 2007. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Pat McCann's Compensation Compare With Similar Sized Companies?
According to our data, Dalata Hotel Group plc has a market capitalization of €1.1b, and pays its CEO total annual compensation worth €1.7m. (This figure is for the year to December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €575k. When we examined a selection of companies with market caps ranging from €358m to €1.4b, we found the median CEO total compensation was €769k.
As you can see, Pat McCann is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Dalata Hotel Group plc is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Dalata Hotel Group has changed over time.
Is Dalata Hotel Group plc Growing?
On average over the last three years, Dalata Hotel Group plc has grown earnings per share (EPS) by 34% each year (using a line of best fit). It achieved revenue growth of 12% over the last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Dalata Hotel Group plc Been A Good Investment?
Dalata Hotel Group plc has generated a total shareholder return of 25% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
We compared the total CEO remuneration paid by Dalata Hotel Group plc, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. So you may want to check if insiders are buying Dalata Hotel Group shares with their own money (free access).
If you want to buy a stock that is better than Dalata Hotel 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 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. Thank you for reading.