Avishai Abrahami has been the CEO of Wix.com Ltd. (NASDAQ:WIX) since 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Avishai Abrahami's Compensation Compare With Similar Sized Companies?
Our data indicates that Wix.com Ltd. is worth US$6.0b, and total annual CEO compensation was reported as US$443k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$357k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$6.7m.
A first glance this seems like a real positive for shareholders, since Avishai Abrahami is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Wix.com, below.
Is Wix.com Ltd. Growing?
Wix.com Ltd. has increased its earnings per share (EPS) by an average of 2.9% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 29%.
I like the look of the strong year-on-year improvement in revenue. And in that context, the modest EPS improvement certainly isn't shabby. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Shareholders might be interested in this free visualization of analyst forecasts.
Has Wix.com Ltd. Been A Good Investment?
I think that the total shareholder return of 169%, over three years, would leave most Wix.com Ltd. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
It appears that Wix.com Ltd. remunerates its CEO below most similar sized companies.
Avishai Abrahami receives relatively low remuneration compared to similar sized companies. And the returns to shareholders were great, over the last few years. Although we could see higher growth, we'd argue the remuneration is modest, based on these observations. So you may want to check if insiders are buying Wix.com 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.
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