Yahoo Finance Should You Worry About Amiad Water Systems Ltd.'s (LON:AFS) CEO Pay?
In 2016 Dori Ivzori was appointed CEO of Amiad Water Systems Ltd. (LON:AFS). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Amiad Water Systems
How Does Dori Ivzori's Compensation Compare With Similar Sized Companies?
Our data indicates that Amiad Water Systems Ltd. is worth UK£59m, and total annual CEO compensation was reported as US$397k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$364k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$317k.
So Dori Ivzori is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Amiad Water Systems, below.
Is Amiad Water Systems Ltd. Growing?
Amiad Water Systems Ltd. has reduced its earnings per share by an average of 22% a year, over the last three years (measured with a line of best fit). Its revenue is up 2.9% over last year.
Unfortunately, earnings per share have trended lower over the last three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Amiad Water Systems Ltd. Been A Good Investment?
Boasting a total shareholder return of 133% over three years, Amiad Water Systems Ltd. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Remuneration for Dori Ivzori is close enough to the median pay for a CEO of a similar sized company .
The company isn't growing earnings per share, but shareholder returns have been strong over the last three years. So we can't see a reason to suggest the pay is inappropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Amiad Water Systems (free visualization of insider trades).
Important note: Amiad Water Systems may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
