Does BioView Ltd.'s (TLV:BIOV) CEO Salary Compare Well With Others?

In 2009, Alan Schwebel was appointed CEO of BioView Ltd. (TLV:BIOV). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for BioView

How Does Alan Schwebel's Compensation Compare With Similar Sized Companies?

Our data indicates that BioView Ltd. is worth ₪33m, and total annual CEO compensation was reported as ₪1.0m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at ₪913k. We looked at a group of companies with market capitalizations under ₪708m, and the median CEO total compensation was ₪1.5m.

Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of BioView. On a sector level, around 50% of total compensation represents salary and 50% is other remuneration. According to our research, BioView has allocated a higher percentage of pay to salary in comparison to the broader sector.

Most shareholders would consider it a positive that Alan Schwebel takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance. You can see a visual representation of the CEO compensation at BioView, below.

Is BioView Ltd. Growing?

BioView Ltd. has reduced its earnings per share by an average of 43% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 42%.

As investors, we are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. 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 BioView Ltd. Been A Good Investment?

With a three year total loss of 48%, BioView Ltd. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

It looks like BioView Ltd. pays its CEO less than similar sized companies.

Alan Schwebel is paid less than CEOs of similar size companies, but growth hasn't been particularly impressive and the total shareholder return over three years would leave many disappointed. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. CEO compensation is an important area to keep your eyes on, but we've also identified 3 warning signs for BioView (2 are concerning!) that you should be aware of before investing here.

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.

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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