How Much Did Mobilicom's (ASX:MOB) CEO Pocket Last Year?

Oren Elkayam became the CEO of Mobilicom Limited (ASX:MOB) in 2017, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Mobilicom.

See our latest analysis for Mobilicom

Comparing Mobilicom Limited's CEO Compensation With the industry

Our data indicates that Mobilicom Limited has a market capitalization of AU$19m, and total annual CEO compensation was reported as AU$394k for the year to December 2020. We note that's a decrease of 38% compared to last year. We note that the salary portion, which stands at AU$289.7k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below AU$259m, we found that the median total CEO compensation was AU$374k. So it looks like Mobilicom compensates Oren Elkayam in line with the median for the industry. What's more, Oren Elkayam holds AU$2.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 60% of total compensation represents salary, while the remainder of 40% is other remuneration. Mobilicom pays out 74% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Mobilicom Limited's Growth

Mobilicom Limited's earnings per share (EPS) grew 33% per year over the last three years. In the last year, its revenue is down 11%.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. 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?

With a three year total loss of 3.8% for the shareholders, Mobilicom Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we touched on above, Mobilicom Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, the company has logged negative shareholder returns over the previous three years. However, EPS growth is positive over the same time frame. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.

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. We identified 3 warning signs for Mobilicom (1 can't be ignored!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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