How Much Is Novolog (Pharm-Up 1966) Ltd (TLV:NVLG) CEO Getting Paid?

Eran Taus became the CEO of Novolog (Pharm-Up 1966) Ltd (TLV:NVLG) in 2017, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Novolog (Pharm-Up 1966).

Check out our latest analysis for Novolog (Pharm-Up 1966)

How Does Total Compensation For Eran Taus Compare With Other Companies In The Industry?

At the time of writing, our data shows that Novolog (Pharm-Up 1966) Ltd has a market capitalization of ₪1.4b, and reported total annual CEO compensation of ₪3.0m for the year to December 2019. This means that the compensation hasn't changed much from last year. Notably, the salary which is ₪1.71m, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from ₪644m to ₪2.6b, we found that the median CEO total compensation was ₪911k. Hence, we can conclude that Eran Taus is remunerated higher than the industry median.

Speaking on an industry level, nearly 92% of total compensation represents salary, while the remainder of 7.9% is other remuneration. It's interesting to note that Novolog (Pharm-Up 1966) allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Novolog (Pharm-Up 1966) Ltd's Growth Numbers

Novolog (Pharm-Up 1966) Ltd has seen its earnings per share (EPS) increase by 8.3% a year over the past three years. It achieved revenue growth of 8.5% over the last year.

We're not particularly impressed by the revenue growth, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 Novolog (Pharm-Up 1966) Ltd Been A Good Investment?

Boasting a total shareholder return of 96% over three years, Novolog (Pharm-Up 1966) Ltd has done well by shareholders. 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...

As we noted earlier, Novolog (Pharm-Up 1966) pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But shareholder returns have been positive for the last three years. That's why we were hoping EPS growth would match this growth, but sadly that is not the case. All things considered, we don't think there's a reason to criticize CEO compensation, though we hope Novolog (Pharm-Up 1966) will post healthier EPS growth moving forward.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Novolog (Pharm-Up 1966) that you should be aware of before investing.

Switching gears from Novolog (Pharm-Up 1966), if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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