How Does Dream Unlimited's (TSE:DRM) CEO Salary Compare to Peers?

Michael Cooper is the CEO of Dream Unlimited Corp. (TSE:DRM), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Dream Unlimited

Comparing Dream Unlimited Corp.'s CEO Compensation With the industry

Our data indicates that Dream Unlimited Corp. has a market capitalization of CA$878m, and total annual CEO compensation was reported as CA$4.7m for the year to December 2019. That's just a smallish increase of 3.7% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$1.0m.

For comparison, other companies in the same industry with market capitalizations ranging between CA$527m and CA$2.1b had a median total CEO compensation of CA$2.4m. Hence, we can conclude that Michael Cooper is remunerated higher than the industry median. Moreover, Michael Cooper also holds CA$764k worth of Dream Unlimited stock directly under their own name.

On an industry level, roughly 54% of total compensation represents salary and 46% is other remuneration. In Dream Unlimited's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader 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 Dream Unlimited Corp.'s Growth Numbers

Over the past three years, Dream Unlimited Corp. has seen its earnings per share (EPS) grow by 126% per year. It achieved revenue growth of 95% over the last year.

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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Dream Unlimited Corp. Been A Good Investment?

Dream Unlimited Corp. has served shareholders reasonably well, with a total return of 32% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

As previously discussed, Michael is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, we must not forget that the EPS growth has been very strong over three years. We also note that, over the same time frame, shareholder returns haven't been bad. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't say CEO compensation problematic.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 2 warning signs for Dream Unlimited (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Important note: Dream Unlimited 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.

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. 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.

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