Does Dubber Corporation Limited's (ASX:DUB) CEO Salary Reflect Performance?

In This Article:

Steve McGovern has been the CEO of Dubber Corporation Limited (ASX:DUB) since 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Dubber

How Does Steve McGovern's Compensation Compare With Similar Sized Companies?

Our data indicates that Dubber Corporation Limited is worth AU$272m, and total annual CEO compensation is AU$669k. (This figure is for the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$240k. We examined companies with market caps from AU$146m to AU$583m, and discovered that the median CEO total compensation of that group was AU$710k.

That means Steve McGovern receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Dubber, below.

ASX:DUB CEO Compensation, September 10th 2019
ASX:DUB CEO Compensation, September 10th 2019

Is Dubber Corporation Limited Growing?

Dubber Corporation Limited has increased its earnings per share (EPS) by an average of 25% a year, over the last three years (using a line of best fit). Its revenue is up 269% over last year.

This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Dubber Corporation Limited Been A Good Investment?

I think that the total shareholder return of 283%, over three years, would leave most Dubber Corporation Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Steve McGovern is paid around the same as most CEOs of similar size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Dubber (free visualization of insider trades).