We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Dropsuite Limited's (ASX:DSE) CEO For Now
In This Article:
Key Insights
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Dropsuite will host its Annual General Meeting on 21st of May
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Salary of AU$402.5k is part of CEO Charif El-Ansari's total remuneration
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The overall pay is 52% above the industry average
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Dropsuite's total shareholder return over the past three years was 41% while its EPS grew by 116% over the past three years
Performance at Dropsuite Limited (ASX:DSE) has been reasonably good and CEO Charif El-Ansari has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 21st of May. However, some shareholders may still want to keep CEO compensation within reason.
See our latest analysis for Dropsuite
How Does Total Compensation For Charif El-Ansari Compare With Other Companies In The Industry?
At the time of writing, our data shows that Dropsuite Limited has a market capitalization of AU$181m, and reported total annual CEO compensation of AU$737k for the year to December 2023. That's a notable increase of 43% on last year. Notably, the salary which is AU$402.5k, represents a considerable chunk of the total compensation being paid.
For comparison, other companies in the Australian Software industry with market capitalizations below AU$303m, reported a median total CEO compensation of AU$484k. This suggests that Charif El-Ansari is paid more than the median for the industry. Furthermore, Charif El-Ansari directly owns AU$9.0m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$403k | AU$341k | 55% |
Other | AU$334k | AU$172k | 45% |
Total Compensation | AU$737k | AU$513k | 100% |
Talking in terms of the industry, salary represented approximately 57% of total compensation out of all the companies we analyzed, while other remuneration made up 43% of the pie. Our data reveals that Dropsuite allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Dropsuite Limited's Growth
Dropsuite Limited has seen its earnings per share (EPS) increase by 116% a year over the past three years. It achieved revenue growth of 48% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.