Oleg Vornik has been the CEO of DroneShield Limited (ASX:DRO) since 2017. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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.
See our latest analysis for DroneShield
How Does Oleg Vornik's Compensation Compare With Similar Sized Companies?
Our data indicates that DroneShield Limited is worth AU$96m, and total annual CEO compensation was reported as AU$637k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$226k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We took a group of companies with market capitalizations below AU$291m, and calculated the median CEO total compensation to be AU$378k.
As you can see, Oleg Vornik is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean DroneShield Limited is paying too much. 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 DroneShield, below.
Is DroneShield Limited Growing?
On average over the last three years, DroneShield Limited has grown earnings per share (EPS) by 85% each year (using a line of best fit). In the last year, its revenue is up 524%.
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. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has DroneShield Limited Been A Good Investment?
I think that the total shareholder return of 93%, over three years, would leave most DroneShield Limited shareholders smiling. 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.
We examined the amount DroneShield Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling DroneShield (free visualization of insider trades).
Important note: DroneShield may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.