Shlomi Cohen has been the CEO of On Track Innovations Ltd (NASDAQ:OTIV) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Shlomi Cohen’s Compensation Compare With Similar Sized Companies?
According to our data, On Track Innovations Ltd has a market capitalization of US$32m, and pays its CEO total annual compensation worth US$886k. That’s a notable increase of 34% on last year. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$296k.
It would therefore appear that On Track Innovations Ltd pays Shlomi Cohen 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at On Track Innovations has changed from year to year.
Is On Track Innovations Ltd Growing?
Over the last three years On Track Innovations Ltd has grown its earnings per share (EPS) by an average of 70% per year. Its revenue is up 19% over last year.
This demonstrates that the company has been improving recently. A good result. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has On Track Innovations Ltd Been A Good Investment?
Most shareholders would probably be pleased with On Track Innovations Ltd for providing a total return of 46% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
We examined the amount On Track Innovations Ltd pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
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 email@example.com.