Shaike Orbach has been the CEO of Silicom Ltd. (NASDAQ:SILC) since 2001. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Shaike Orbach's Compensation Compare With Similar Sized Companies?
According to our data, Silicom Ltd. has a market capitalization of US$232m, and pays its CEO total annual compensation worth US$885k. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$354k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.2m.
So Shaike Orbach receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Silicom has changed from year to year.
Is Silicom Ltd. Growing?
Silicom Ltd. has increased its earnings per share (EPS) by an average of 7.2% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 4.0%.
I'm not particularly impressed by the revenue growth, but I'm happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. You might want to check this free visual report on analyst forecasts for future earnings.
Has Silicom Ltd. Been A Good Investment?
Given the total loss of 19% over three years, many shareholders in Silicom Ltd. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Shaike Orbach is paid around what is normal the leaders of comparable size companies.
We would like to see somewhat stronger per share growth. And it's hard to argue that the returns over the last three years have delighted. So many would argue that the CEO is certainly not underpaid. So you may want to check if insiders are buying Silicom 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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