In This Article:
Milan Patel has been the CEO of dotdigital Group Plc (LON:DOTD) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for dotdigital Group
How Does Milan Patel's Compensation Compare With Similar Sized Companies?
Our data indicates that dotdigital Group Plc is worth UK£277m, and total annual CEO compensation is UK£565k. (This number is for the twelve months until June 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£265k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£161m to UK£643m. The median total CEO compensation was UK£703k.
So Milan Patel receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at dotdigital Group has changed from year to year.
Is dotdigital Group Plc Growing?
On average over the last three years, dotdigital Group Plc has grown earnings per share (EPS) by 18% each year (using a line of best fit). In the last year, its revenue is up 38%.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has dotdigital Group Plc Been A Good Investment?
Most shareholders would probably be pleased with dotdigital Group Plc for providing a total return of 93% over three years. 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...
Milan Patel is paid around what is normal the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if dotdigital Group insiders are buying or selling shares.