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Is Daejan Holdings Plc’s (LON:DJAN) CEO Paid Enough Relative To Peers?

Bernadette Hatcher

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In 1976 Benzion S. Freshwater was appointed CEO of Daejan Holdings Plc (LON:DJAN). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Daejan Holdings

How Does Benzion S. Freshwater’s Compensation Compare With Similar Sized Companies?

According to our data, Daejan Holdings Plc has a market capitalization of UK£955m, and pays its CEO total annual compensation worth UK£1.2m. (This is based on the year to 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth UK£1.2m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£776m to UK£2.5b. The median total CEO compensation was UK£1.4m.

So Benzion S. Freshwater is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Daejan Holdings has changed over time.

LSE:DJAN CEO Compensation February 13th 19

Is Daejan Holdings Plc Growing?

Over the last three years Daejan Holdings Plc has grown its earnings per share (EPS) by an average of 10% per year (using a line of best fit). It achieved revenue growth of 2.7% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Daejan Holdings Plc Been A Good Investment?

With a total shareholder return of 11% over three years, Daejan Holdings Plc shareholders would, in general, be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary…

Benzion S. Freshwater is paid around the same as most CEOs of similar size companies.

We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So considering these factors, we think the CEO pay is probably quite reasonable. Shareholders may want to check for free if Daejan Holdings insiders are buying or selling shares.

Important note: Daejan Holdings 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.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.