Larry Jasinski became the CEO of ReWalk Robotics Ltd. (NASDAQ:RWLK) in 2012. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Larry Jasinski's Compensation Compare With Similar Sized Companies?
According to our data, ReWalk Robotics Ltd. has a market capitalization of US$24m, and pays its CEO total annual compensation worth US$770k. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$389k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$473k.
As you can see, Larry Jasinski is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean ReWalk Robotics Ltd. is paying too much. 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 ReWalk Robotics has changed from year to year.
Is ReWalk Robotics Ltd. Growing?
On average over the last three years, ReWalk Robotics Ltd. has grown earnings per share (EPS) by 50% each year (using a line of best fit). It saw its revenue drop -4.2% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.
Has ReWalk Robotics Ltd. Been A Good Investment?
Since shareholders would have lost about 98% over three years, some ReWalk Robotics Ltd. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
We compared the total CEO remuneration paid by ReWalk Robotics Ltd., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling ReWalk Robotics (free visualization of insider trades).
Important note: ReWalk Robotics may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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