Is First International Bank of Israel Ltd's (TLV:FIBI) CEO Overpaid Relative To Its Peers?

Smadar Barber-Tsadik became the CEO of First International Bank of Israel Ltd (TLV:FIBI) in 2007. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.

Check out our latest analysis for First International Bank of Israel

How Does Smadar Barber-Tsadik's Compensation Compare With Similar Sized Companies?

According to our data, First International Bank of Israel Ltd has a market capitalization of ₪10b, and paid its CEO total annual compensation worth ₪3.4m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at ₪2.4m. When we examined a selection of companies with market caps ranging from ₪6.9b to ₪22b, we found the median CEO total compensation was ₪4.5m.

So Smadar Barber-Tsadik receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at First International Bank of Israel has changed from year to year.

Is First International Bank of Israel Ltd Growing?

First International Bank of Israel Ltd has increased its earnings per share (EPS) by an average of 16% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 2.9%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

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

Most shareholders would probably be pleased with First International Bank of Israel Ltd for providing a total return of 104% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Smadar Barber-Tsadik is paid around what is normal the leaders of comparable size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at First International Bank of Israel.

Important note: First International Bank of Israel 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

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