Yahoo Finance Is SimiGon Ltd. (LON:SIM) Overpaying Its CEO?
The CEO of SimiGon Ltd. (LON:SIM) is Ami Vizer. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for SimiGon
How Does Ami Vizer's Compensation Compare With Similar Sized Companies?
According to our data, SimiGon Ltd. has a market capitalization of UK£4.2m, and paid its CEO total annual compensation worth US$521k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$414k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$307k.
It would therefore appear that SimiGon Ltd. pays Ami Vizer more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at SimiGon has changed from year to year.
Is SimiGon Ltd. Growing?
On average over the last three years, SimiGon Ltd. has shrunk earnings per share by 106% each year (measured with a line of best fit). Its revenue is up 16% over last year.
Unfortunately, earnings per share have trended lower over the last three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has SimiGon Ltd. Been A Good Investment?
Since shareholders would have lost about 66% over three years, some SimiGon Ltd. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We examined the amount SimiGon Ltd. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Neither earnings per share nor revenue have been growing sufficiently to impress us, over the last three years. Arguably worse, investors are without a positive return for the last three years. This analysis suggests to us that the CEO is paid too generously! So you may want to check if insiders are buying SimiGon shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
