How Is First International Bank of Israel's (TLV:FIBI) CEO Compensated?

This article will reflect on the compensation paid to Smadar Barber-Tsadik who has served as CEO of First International Bank of Israel Ltd (TLV:FIBI) since 2007. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for First International Bank of Israel

Comparing First International Bank of Israel Ltd's CEO Compensation With the industry

According to our data, First International Bank of Israel Ltd has a market capitalization of ₪8.1b, and paid its CEO total annual compensation worth ₪3.5m over the year to December 2019. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at ₪2.77m constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the industry with market capitalizations between ₪6.7b and ₪21b, we discovered that the median CEO total compensation of that group was ₪772k. Hence, we can conclude that Smadar Barber-Tsadik is remunerated higher than the industry median.

On an industry level, roughly 58% of total compensation represents salary and 42% is other remuneration. According to our research, First International Bank of Israel has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

First International Bank of Israel Ltd's Growth

First International Bank of Israel Ltd's earnings per share (EPS) grew 13% per year over the last three years. Its revenue is down 6.5% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has First International Bank of Israel Ltd Been A Good Investment?

First International Bank of Israel Ltd has served shareholders reasonably well, with a total return of 30% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

As we touched on above, First International Bank of Israel Ltd 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 us with its EPS growth, over three years. Looking at the same time period, we think that the shareholder returns are respectable. So, considering the EPS growth we do not wish to criticize CEO compensation, though we'd recommend further research on management.

Shareholders may want to check for free if First International Bank of Israel insiders are buying or selling shares.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

When trading First International Bank of Israel or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.