Yahoo Finance We Think Shareholders May Consider Being More Generous With Donaco International Limited's (ASX:DNA) CEO Compensation Package
Key Insights
Donaco International to hold its Annual General Meeting on 24th of November
Total pay for CEO Techatut Sukjaroenkraisri Huy includes AU$300.0k salary
The total compensation is 57% less than the average for the industry
Donaco International's total shareholder return over the past three years was 5.4% while its EPS grew by 2.8% over the past three years
The decent performance at Donaco International Limited (ASX:DNA) recently will please most shareholders as they go into the AGM coming up on 24th of November. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.
Check out our latest analysis for Donaco International
How Does Total Compensation For Techatut Sukjaroenkraisri Huy Compare With Other Companies In The Industry?
Our data indicates that Donaco International Limited has a market capitalization of AU$48m, and total annual CEO compensation was reported as AU$300k for the year to June 2023. There was no change in the compensation compared to last year. Notably, the salary of AU$300k is the entirety of the CEO compensation.
In comparison with other companies in the Australian Hospitality industry with market capitalizations under AU$308m, the reported median total CEO compensation was AU$690k. Accordingly, Donaco International pays its CEO under the industry median. Furthermore, Techatut Sukjaroenkraisri Huy directly owns AU$10m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$300k | AU$300k | 100% |
Other | - | - | - |
Total Compensation | AU$300k | AU$300k | 100% |
On an industry level, roughly 57% of total compensation represents salary and 43% is other remuneration. Speaking on a company level, Donaco International prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Donaco International Limited's Growth Numbers
Over the past three years, Donaco International Limited has seen its earnings per share (EPS) grow by 2.8% per year. It achieved revenue growth of 898% over the last year.
We like the look of the strong year-on-year improvement in revenue. Combined with modest EPS growth, we get a good impression of the company. We wouldn't say this is necessarily top notch growth, but it is certainly promising. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Donaco International Limited Been A Good Investment?
With a total shareholder return of 5.4% over three years, Donaco International Limited has done okay by shareholders, but there's always room for improvement. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.
In Summary...
Donaco International pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Donaco International that investors should be aware of in a dynamic business environment.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
