Key Insights

• DHI Group to hold its Annual General Meeting on 25th of April
• Total pay for CEO Art Zeile includes US$577.5k salary
• The overall pay is 736% above the industry average
• Over the past three years, DHI Group's EPS grew by 134% and over the past three years, the total loss to shareholders 25%

The underwhelming share price performance of DHI Group, Inc. (NYSE:DHX) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 25th of April. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

How Does Total Compensation For Art Zeile Compare With Other Companies In The Industry?

Our data indicates that DHI Group, Inc. has a market capitalization of US$106m, and total annual CEO compensation was reported as US$3.8m for the year to December 2023. Notably, that's an increase of 18% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$578k.

In comparison with other companies in the American Interactive Media and Services industry with market capitalizations under US$200m, the reported median total CEO compensation was US$457k. This suggests that Art Zeile is paid more than the median for the industry. Furthermore, Art Zeile directly owns US$7.0m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 25% of total compensation out of all the companies we analyzed, while other remuneration made up 75% of the pie. DHI Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at DHI Group, Inc.'s Growth Numbers

DHI Group, Inc.'s earnings per share (EPS) grew 134% per year over the last three years. In the last year, its revenue is up 1.5%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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.

Has DHI Group, Inc. Been A Good Investment?

Given the total shareholder loss of 25% over three years, many shareholders in DHI Group, Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 3 warning signs for DHI Group you should be aware of, and 1 of them can't be ignored.

Important note: DHI Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.