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Felice Montrone is the CEO of Desane Group Holdings Limited (ASX:DGH). 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Felice Montrone’s Compensation Compare With Similar Sized Companies?
Our data indicates that Desane Group Holdings Limited is worth AU$54m, and total annual CEO compensation is AU$342k. (This figure is for the year to June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$317k. We examined a group of similar sized companies, with market capitalizations of below AU$288m. The median CEO total compensation in that group is AU$359k.
That means Felice Montrone 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.
You can see a visual representation of the CEO compensation at Desane Group Holdings, below.
Is Desane Group Holdings Limited Growing?
On average over the last three years, Desane Group Holdings Limited has grown earnings per share (EPS) by 52% each year (using a line of best fit). In the last year, its revenue is up 144%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Desane Group Holdings Limited Been A Good Investment?
Boasting a total shareholder return of 135% over three years, Desane Group Holdings Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Felice Montrone is close enough to the median pay for a CEO of a similar sized company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Desane Group Holdings insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.