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Temogen Hield became the CEO of DataDot Technology Limited (ASX:DDT) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for DataDot Technology
How Does Temogen Hield's Compensation Compare With Similar Sized Companies?
According to our data, DataDot Technology Limited has a market capitalization of AU$4.9m, and pays its CEO total annual compensation worth AU$336k. (This figure is for the year to June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$251k. We examined a group of similar sized companies, with market capitalizations of below AU$282m. The median CEO total compensation in that group is AU$357k.
So Temogen Hield is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at DataDot Technology has changed over time.
Is DataDot Technology Limited Growing?
On average over the last three years, DataDot Technology Limited has shrunk earnings per share by 2.6% each year (measured with a line of best fit). It saw its revenue drop -17% over the last year.
In the last three years the company has failed to grow earnings per s. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has DataDot Technology Limited Been A Good Investment?
Since shareholders would have lost about 68% over three years, some DataDot Technology Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Remuneration for Temogen Hield is close enough to the median pay for a CEO of a similar sized company .
The company isn't growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don't think the CEO is underpaid! So you may want to check if insiders are buying DataDot Technology shares with their own money (free access).