This article will reflect on the compensation paid to Yossi Tamar who has served as CEO of Capital Point Ltd. (TLV:CPTP) since 2011. This analysis will also assess whether Capital Point pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for Capital Point
Comparing Capital Point Ltd.'s CEO Compensation With the industry
Our data indicates that Capital Point Ltd. has a market capitalization of ₪53m, and total annual CEO compensation was reported as ₪2.1m for the year to December 2019. Notably, that's a decrease of 34% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at ₪948k.
On comparing similar-sized companies in the industry with market capitalizations below ₪652m, we found that the median total CEO compensation was ₪1.2m. Hence, we can conclude that Yossi Tamar is remunerated higher than the industry median.
| Component | 2019 | 2016 | Proportion (2019) |
| Salary | ₪948k | ₪876k | 45% |
| Other | ₪1.1m | ₪2.3m | 55% |
| Total Compensation | ₪2.1m | ₪3.2m | 100% |
On an industry level, around 72% of total compensation represents salary and 28% is other remuneration. In Capital Point's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Capital Point Ltd.'s Growth Numbers
Capital Point Ltd. has reduced its earnings per share by 53% a year over the last three years. Its revenue is up 66% over the last year.
Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Capital Point Ltd. Been A Good Investment?
Since shareholders would have lost about 42% over three years, some Capital Point Ltd. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
As previously discussed, Yossi is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. At the same time, looking at EPS and total shareholder returns, it's tough to say Capital Point is in a sound position, considering both metrics are down. On a more positive note, the company has produced a more positive revenue growth more recently. Few would argue that it's wise for the company to pay any more, before returns improve.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 2 warning signs (and 1 which can't be ignored) in Capital Point we think you should know about.
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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About TASE:CPTP
Capital Point
Operates as a venture capital firm specializing in financing and investments in early stage companies.
Adequate balance sheet slight.
