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Erez Raphael has been the CEO of DarioHealth Corp. (NASDAQ:DRIO) since 2013. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Erez Raphael's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that DarioHealth Corp. has a market cap of US$10m, and reported total annual CEO compensation of US$1.7m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$205k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$510k.
As you can see, Erez Raphael is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean DarioHealth Corp. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at DarioHealth, below.
Is DarioHealth Corp. Growing?
Over the last three years DarioHealth Corp. has grown its earnings per share (EPS) by an average of 50% per year (using a line of best fit). Its revenue is up 2.6% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.
Has DarioHealth Corp. Been A Good Investment?
Given the total loss of 93% over three years, many shareholders in DarioHealth Corp. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at DarioHealth Corp. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. So you may want to check if insiders are buying DarioHealth 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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If you spot an error that warrants correction, please contact the editor at email@example.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.