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Is Nano Dimension Ltd.’s (NASDAQ:NNDM) CEO Overpaid Relative To Its Peers?

Vernon Smith

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Amit Dror became the CEO of Nano Dimension Ltd. (NASDAQ:NNDM) in 2014. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.

View our latest analysis for Nano Dimension

How Does Amit Dror’s Compensation Compare With Similar Sized Companies?

According to our data, Nano Dimension Ltd. has a market capitalization of US$121m, and pays its CEO total annual compensation worth US$264k. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$198k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$300k.

So Amit Dror 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, below, how CEO compensation at Nano Dimension has changed over time.

NASDAQCM:NNDM CEO Compensation February 6th 19

Is Nano Dimension Ltd. Growing?

Nano Dimension Ltd. has reduced its earnings per share by an average of 11% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 725% over the last year.

The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. Shareholders might be interested in this free visualization of analyst forecasts.

Has Nano Dimension Ltd. Been A Good Investment?

Since shareholders would have lost about 88% over three years, some Nano Dimension Ltd. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

Amit Dror is paid around what is normal the leaders of comparable size companies.

The company cannot boast particularly strong per share growth. And it’s hard to argue that the returns over the last three years have delighted. So it would take a bold person to suggest the pay is too modest. Shareholders may want to check for free if Nano Dimension insiders are buying or selling shares.

If you want to buy a stock that is better than Nano Dimension, this free list of high return, low debt companies is a great place to look.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.