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The CEO of Dart Group PLC (LON:DTG) is Philip Meeson. First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Dart Group
How Does Philip Meeson's Compensation Compare With Similar Sized Companies?
According to our data, Dart Group PLC has a market capitalization of UK£1.3b, and pays its CEO total annual compensation worth UK£472k. (This figure is for the year to March 2018). Notably, the salary of UK£462k is the vast majority of the CEO compensation. When we examined a selection of companies with market caps ranging from UK£803m to UK£2.6b, we found the median CEO total compensation was UK£1.4m.
Most shareholders would consider it a positive that Philip Meeson takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Dart Group has changed over time.
Is Dart Group PLC Growing?
On average over the last three years, Dart Group PLC has grown earnings per share (EPS) by 24% each year (using a line of best fit). Its revenue is up 39% over last year.
This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.
Has Dart Group PLC Been A Good Investment?
I think that the total shareholder return of 59%, over three years, would leave most Dart Group PLC shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
It appears that Dart Group PLC remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Philip Meeson deserves a raise!
It's not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders are also buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Dart Group.