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Amit Dror became the CEO of Nano Dimension Ltd. (NASDAQ:NNDM) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Amit Dror's Compensation Compare With Similar Sized Companies?
According to our data, Nano Dimension Ltd. has a market capitalization of US$54m, and pays its CEO total annual compensation worth US$222k. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$183k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$468k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Nano Dimension has changed from year to year.
Is Nano Dimension Ltd. Growing?
Nano Dimension Ltd. has increased its earnings per share (EPS) by an average of 6.4% a year, over the last three years (using a line of best fit). It achieved revenue growth of 349% over the last year.
I like the look of the strong year-on-year improvement in revenue. Combined with modest EPS growth, we get a good impression of the company. I wouldn't say this is necessarily top notch growth, but it is certainly promising. Shareholders might be interested in this free visualization of analyst forecasts.
Has Nano Dimension Ltd. Been A Good Investment?
Given the total loss of 94% over three years, many shareholders in Nano Dimension Ltd. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
It appears that Nano Dimension Ltd. remunerates its CEO below most similar sized companies.
Amit Dror is paid less than CEOs of similar size companies, but growth hasn't been particularly impressive and the total shareholder return over three years would leave many disappointed. Many shareholders would probably like to see improvements, but our analysis does not suggest that CEO compensation is too generous. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Nano Dimension (free visualization of insider trades).
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.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.