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Should You Worry About Dalet S.A.'s (EPA:DLT) CEO Pay?

Simply Wall St

David Lasry is the CEO of Dalet S.A. (EPA:DLT). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.

See our latest analysis for Dalet

How Does David Lasry's Compensation Compare With Similar Sized Companies?

Our data indicates that Dalet S.A. is worth €48m, and total annual CEO compensation was reported as €281k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €203k. We examined a group of similar sized companies, with market capitalizations of below €180m. The median CEO total compensation in that group is €157k.

It would therefore appear that Dalet S.A. pays David Lasry more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. 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 Dalet has changed over time.

ENXTPA:DLT CEO Compensation, December 4th 2019

Is Dalet S.A. Growing?

Over the last three years Dalet S.A. has grown its earnings per share (EPS) by an average of 48% per year (using a line of best fit). It achieved revenue growth of 2.9% over the last year.

This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.

Has Dalet S.A. Been A Good Investment?

Dalet S.A. has served shareholders reasonably well, with a total return of 28% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

We compared total CEO remuneration at Dalet S.A. 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.

However we must not forget that the EPS growth has been very strong over three years. Looking at the same time period, we think that the shareholder returns are respectable. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. Whatever your view on compensation, you might want to check if insiders are buying or selling Dalet shares (free trial).

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 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.

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. Thank you for reading.