Is the CEO of Digital Ally, Inc. (NASDAQ: DGLY) paid at a competitive price?

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<p class = "Canvas-Atom Canvas-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Stan Ross was the CEO of Digital Ally, Inc. (NASDAQ: DGLY) since 2005. First, this article compares the CEO's remuneration to the remuneration of companies of comparable size. Next we look at the growth that the business shows. Finally, as a second performance indicator, we will look at the returns that shareholders have made in recent years. This method should give us insight into how fairly the company is paying the CEO. "Data-reactid =" 27 "> Stan Ross has been CEO of Digital Ally, Inc. (NASDAQ: DGLY) since 2005. First of all, this article points out that compare CEO compensation to that of companies of similar size let's look at the growth that the company shows and, finally, as a second performance indicator, the returns that shareholders have made in recent years. Give us information to assess how adequately the company is paying the CEO.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = " Check out our latest analysis for Digital Ally "data-reactid =" 28 "> Check out our latest analysis for Digital Ally

How does Stan Ross' compensation compare to comparable companies?

According to our data, Digital Ally, Inc. has a market cap of $ 13 million and has paid its CEO total annual compensation of $ 1.1 million through December 2018. While this analysis focuses on total compensation, it's worth pointing out the salary is lower and is worth $ 250,000. We find that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined a group of companies of similar size with a market capitalization of less than $ 200 million. The average total CEO compensation in this group is $ 526,000.

It therefore appears that Digital Ally, Inc. Stan Ross pays more than the CEO's average remuneration for companies of similar size in the same market. However, this fact alone does not mean that the remuneration is too high. A closer look at the performance of the underlying business gives us a better idea of ​​whether the payment is particularly generous.

The following shows how the remuneration of CEOs at Digital Ally has changed over time.

NasdaqCM: DGLY CEO Compensation, January 4, 2020

Is Digital Ally, Inc. growing?

Digital Ally, Inc. has increased earnings per share (EPS) by an average of 17% per year over the past three years (using a best-fit line). Revenue decreased 12% last year.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Overall, this is a positive result for the shareholders the company has improved in recent years. Revenue growth is a real growth advantage, but ultimately profits are more important. We don't have analyst forecasts, but you may want to estimate This data-rich visualization "data-reactid =" 47 "> Overall, this is a positive result for shareholders, which shows that the company has improved in recent years. Revenue growth is a real plus for growth, but ultimately profits are higher don't have analyst forecasts, but you can evaluate this data-rich visualization of profit, revenue, and cash flow.

Was Digital Ally, Inc. a good investment?

Since shareholders would have lost approximately 74% in three years, some shareholders of Digital Ally, Inc. would certainly feel negative emotions. This suggests that it would be unwise for the company to overpay the CEO.

In total…

We compared the overall compensation of the CEO of Digital Ally, Inc. with the compensation of companies with a similar market capitalization. We have found that it pays well above the median paid in the benchmark group.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "However, we must not forget that the EPS has grown On the other hand, returns to investors have likely disappointed many over the same period, so one might conclude that it would be better if the company waits for growth to be reflected in the share price before increasing the CEO's compensation would you perhaps like Check if Insider buys Digital Ally shares with their own money (free access)."data-reactid =" 52 "> However, we must not forget that EPS growth has been very strong over three years, but on the other hand, returns for investors over the same period have probably disappointed many, and one could conclude that this is the case Better, the company waited for growth to translate into share price before the CEO's compensation was increased, so you may want to check if Insider Digital buys Ally shares with their own money (free access).

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Of course You could find a fantastic investment if you look elsewhere. So take a look free List of interesting companies. "data-reactid =" 53 "> Of course You could find a fantastic investment if you look elsewhere. So take a look free List of interesting companies.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "If you discover an error that justifies a correction, please contact the editorial team at editorial-team@simplywallst.com, This article from Simply Wall St is general in nature. It is not a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Simply Wall St has no position in the stocks mentioned.

We strive to provide you with long-term, focused research analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or quality material. Thank you for reading."data-reactid =" 54 ">If you discover an error that justifies a correction, please contact the editorial team at editorial-team@simplywallst.com. This article from Simply Wall St is general in nature. It is not a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Simply Wall St has no position in the stocks mentioned.

We strive to provide you with long-term, focused research analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or quality material. Thank you for reading.