How Much Is Scope Metals Group's (TLV:SCOP) CEO Getting Paid?

This article will reflect on the compensation paid to Gil Haver who has served as CEO of Scope Metals Group Ltd. (TLV:SCOP) since 2007. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Scope Metals Group

How Does Total Compensation For Gil Haver Compare With Other Companies In The Industry?

According to our data, Scope Metals Group Ltd. has a market capitalization of ₪785m, and paid its CEO total annual compensation worth ₪3.5m over the year to December 2019. We note that's a small decrease of 5.5% on last year. In particular, the salary of ₪1.78m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations ranging from ₪331m to ₪1.3b, the reported median CEO total compensation was ₪1.1m. Accordingly, our analysis reveals that Scope Metals Group Ltd. pays Gil Haver north of the industry median. What's more, Gil Haver holds ₪309k worth of shares in the company in their own name.

Talking in terms of the industry, salary represented approximately 99% of total compensation out of all the companies we analyzed, while other remuneration made up 0.8% of the pie. Scope Metals Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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.

A Look at Scope Metals Group Ltd.'s Growth Numbers

Over the last three years, Scope Metals Group Ltd. has shrunk its earnings per share by 14% per year. Its revenue is down 8.3% over the previous year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Scope Metals Group Ltd. Been A Good Investment?

Since shareholders would have lost about 18% over three years, some Scope Metals Group Ltd. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we noted earlier, Scope Metals Group pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Disappointingly, share price gains over the last three years have failed to materialize. What's equally worrying is that the company isn't growing by our analysis. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO a raise.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Scope Metals Group you should be aware of, and 1 of them is significant.

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.

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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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