Oren Elkayam has been the CEO of Mobilicom Limited (ASX:MOB) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Mobilicom pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Comparing Mobilicom Limited's CEO Compensation With the industry
Our data indicates that Mobilicom Limited has a market capitalization of AU$22m, and total annual CEO compensation was reported as AU$637k for the year to December 2019. That's a notable increase of 32% on last year. Notably, the salary which is AU$390.2k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under AU$276m, the reported median total CEO compensation was AU$436k. Accordingly, our analysis reveals that Mobilicom Limited pays Oren Elkayam north of the industry median. What's more, Oren Elkayam holds AU$3.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
On an industry level, roughly 58% of total compensation represents salary and 42% is other remuneration. Our data reveals that Mobilicom allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Mobilicom Limited's Growth
Mobilicom Limited's earnings per share (EPS) grew 73% per year over the last three years. Its revenue is down 3.5% over the previous year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Mobilicom Limited Been A Good Investment?
Since shareholders would have lost about 35% over three years, some Mobilicom Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As we touched on above, Mobilicom Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But the company has impressed with its EPS growth, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Although we'd stop short of calling it inappropriate, we think Oren is earning a very handsome sum.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for Mobilicom you should be aware of, and 1 of them shouldn't be ignored.
Switching gears from Mobilicom, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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