Does Dekel Agri-Vision's (LON:DKL) CEO Salary Compare Well With The Performance Of The Company?

The CEO of Dekel Agri-Vision plc (LON:DKL) is Youval Rasin, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Dekel Agri-Vision.

Check out our latest analysis for Dekel Agri-Vision

Comparing Dekel Agri-Vision plc's CEO Compensation With the industry

At the time of writing, our data shows that Dekel Agri-Vision plc has a market capitalization of UK£9.5m, and reported total annual CEO compensation of €252k for the year to December 2019. That is, the compensation was roughly the same as last year. In particular, the salary of €223.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below UK£153m, we found that the median total CEO compensation was €311k. So it looks like Dekel Agri-Vision compensates Youval Rasin in line with the median for the industry. Moreover, Youval Rasin also holds UK£1.5m worth of Dekel Agri-Vision stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 74% of total compensation represents salary, while the remainder of 26% is other remuneration. Dekel Agri-Vision is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Dekel Agri-Vision plc's Growth Numbers

Over the last three years, Dekel Agri-Vision plc has shrunk its earnings per share by 95% per year. Revenue was pretty flat on last year.

Overall this is not a very positive result for shareholders. And the flat revenue is seriously uninspiring. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Dekel Agri-Vision plc Been A Good Investment?

Since shareholders would have lost about 81% over three years, some Dekel Agri-Vision plc investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we touched on above, Dekel Agri-Vision plc is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, earnings growth and total shareholder return have been negative for the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 2 which are a bit concerning) in Dekel Agri-Vision we think you should know about.

Important note: Dekel Agri-Vision is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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