Should You Worry About Partner Communications Company Ltd’s (NASDAQ:PTNR) CEO Pay Cheque?
In 2015 Isaac Benbenisti was appointed CEO of Partner Communications Company Ltd (NASDAQ:PTNR). 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 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.
Check out our latest analysis for Partner Communications
How Does Isaac Benbenisti’s Compensation Compare With Similar Sized Companies?
According to our data, Partner Communications Company Ltd has a market capitalization of US$876m, and pays its CEO total annual compensation worth ₪9.5m. (This is based on the year to 2016). While we always look at total compensation first, we note that the salary component is less, at ₪2.3m. We examined companies with market caps from ₪1.5b to ₪6.0b, and discovered that the median CEO compensation of that group was ₪8.1m.
So Isaac Benbenisti receives a similar amount to the median CEO pay, amongst 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 Partner Communications has changed over time.
Is Partner Communications Company Ltd Growing?
Partner Communications Company Ltd has increased its earnings per share (EPS) by an average of 41% a year, over the last three years In the last year, its revenue changed by just 0.7%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Partner Communications Company Ltd Been A Good Investment?
Partner Communications Company Ltd has generated a total shareholder return of 14% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
Remuneration for Isaac Benbenisti is close enough to the median pay for a CEO of a similar sized company .
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So upon reflection one could argue that the CEO pay is quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Partner Communications (free visualization of insider trades).
Or you might prefer examine intently this intuitive graph showing past 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 editorial-team@simplywallst.com.
