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Daniel Seah has been the CEO of Digital Domain Holdings Limited (HKG:547) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Digital Domain Holdings
How Does Daniel Seah’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Digital Domain Holdings Limited has a market cap of HK$2.5b, and is paying total annual CEO compensation of HK$5.4m. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at HK$3.5m. We examined companies with market caps from HK$1.6b to HK$6.3b, and discovered that the median CEO compensation of that group was HK$2.3m.
Thus we can conclude that Daniel Seah receives more in total compensation than the median of a group of companies in the same market, and of similar size to Digital Domain Holdings Limited. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Digital Domain Holdings, below.
Is Digital Domain Holdings Limited Growing?
Over the last three years Digital Domain Holdings Limited has shrunk its earnings per share by an average of 29% per year (measured with a line of best fit). In the last year, its revenue is down -24%.
Unfortunately, earnings per share have trended lower over the last three years. 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 Digital Domain Holdings Limited Been A Good Investment?
Given the total loss of 75% over three years, many shareholders in Digital Domain Holdings Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.