In This Article:
Key Insights
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De.mem to hold its Annual General Meeting on 28th of May
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CEO Andreas Kroell's total compensation includes salary of AU$280.0k
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The total compensation is 252% higher than the average for the industry
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De.mem's three-year loss to shareholders was 57% while its EPS grew by 16% over the past three years
The underwhelming share price performance of De.mem Limited (ASX:DEM) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 28th of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.
Check out our latest analysis for De.mem
Comparing De.mem Limited's CEO Compensation With The Industry
At the time of writing, our data shows that De.mem Limited has a market capitalization of AU$32m, and reported total annual CEO compensation of AU$414k for the year to December 2023. We note that's an increase of 27% above last year. In particular, the salary of AU$280.0k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the Australia Water Utilities industry with market capitalizations below AU$300m, reported a median total CEO compensation of AU$118k. Hence, we can conclude that Andreas Kroell is remunerated higher than the industry median. Furthermore, Andreas Kroell directly owns AU$386k worth of shares in the company.
| Component | 2023 | 2022 | Proportion (2023) |
| Salary | AU$280k | AU$288k | 68% |
| Other | AU$134k | AU$39k | 32% |
| Total Compensation | AU$414k | AU$327k | 100% |
On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. Although there is a difference in how total compensation is set, De.mem more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
De.mem Limited's Growth
De.mem Limited's earnings per share (EPS) grew 16% per year over the last three years. It achieved revenue growth of 19% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.