Key Insights

• Dixie Group to hold its Annual General Meeting on 1st of May
• Total pay for CEO Dan Frierson includes US$625.0k salary
• Total compensation is 90% above industry average
• Dixie Group's EPS declined by 61% over the past three years while total shareholder loss over the past three years was 85%

Shareholders will probably not be too impressed with the underwhelming results at The Dixie Group, Inc. (NASDAQ:DXYN) recently. At the upcoming AGM on 1st of May, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

How Does Total Compensation For Dan Frierson Compare With Other Companies In The Industry?

Our data indicates that The Dixie Group, Inc. has a market capitalization of US$7.6m, and total annual CEO compensation was reported as US$1.2m for the year to December 2023. That's a notable increase of 19% on last year. Notably, the salary which is US$625.0k, represents a considerable chunk of the total compensation being paid.

On comparing similar-sized companies in the American Consumer Durables industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$611k. This suggests that Dan Frierson is paid more than the median for the industry. What's more, Dan Frierson holds US$519k worth of shares in the company in their own name.

On an industry level, around 18% of total compensation represents salary and 82% is other remuneration. Dixie Group pays out 54% of remuneration in the form of a salary, significantly higher than the industry average. 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 The Dixie Group, Inc.'s Growth Numbers

The Dixie Group, Inc. has reduced its earnings per share by 61% a year over the last three years. In the last year, its revenue is down 9.0%.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 The Dixie Group, Inc. Been A Good Investment?

Few The Dixie Group, Inc. shareholders would feel satisfied with the return of -85% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

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. We did our research and identified 3 warning signs (and 2 which are potentially serious) in Dixie Group we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.