Why Dicker Data CEO Doesn’t Cut Himself A Salary
IT mogul David Dicker runs ASX-listed tech giant Dicker Data, which hit over $2 billion in revenue for the full-year. But he doesn’t cut himself a yearly salary.
The high-flying CEO instead opts for a 100 per cent dividend payout ratio which sees Dicker net millions a year in shares.
In 2020, Dicker earned a plum $21.5 million from the dividend payouts.
“I credit the idea from Kerry Packer. I figured if it was good enough for Packer, it would be good enough for me. I thought that was the correct strategy,” Dicker told the Australian Financial Review.
“I make a fair bit of money, but I only make that based on the company getting the outcomes and it’s my final responsibility to make that happen.”
Dicker and his co-founder Fiona Brown own more than 70 per cent of Dicker Data between them both.
The company has a market capitalisation of $1.9 billion and distributes hardware and software in Australia.
Dicker Data counts big-name tech companies such as Samsung, Dell, Lenovo, Laser, Telstra, Microsoft and LG as clients.
In 2020, Dicker Data’s share price skyrocketed 124 per cent from $5 to $11 per share.
Dicker’s strategy earning an income only through dividend payouts has worked out quite well for the IT boss.
He was ranked the 29th richest executive in Australia in 2015 with his shareholding valued at $102.6 million despite not drawing a salary that year either.
Dicker also owns his own supercar manufacturing business called Rodin Cars.
In 2018, Dicker Data rewarded each of its 400-plus employees across ANZ $1000 each in company shares.