How Does Bram Industries' (TLV:BRAM) CEO Salary Compare to Peers?

The CEO of Bram Industries Ltd. (TLV:BRAM) is Eliahu Bramli, and this article examines 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 Bram Industries.

View our latest analysis for Bram Industries

Comparing Bram Industries Ltd.'s CEO Compensation With the industry

At the time of writing, our data shows that Bram Industries Ltd. has a market capitalization of ₪71m, and reported total annual CEO compensation of ₪1.5m for the year to December 2019. That is, the compensation was roughly the same as last year. Notably, the salary which is ₪1.38m, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below ₪668m, we found that the median total CEO compensation was ₪228k. This suggests that Eliahu Bramli is paid more than the median for the industry. Furthermore, Eliahu Bramli directly owns ₪313k worth of shares in the company.

On an industry level, around 93% of total compensation represents salary and 7.3% is other remuneration. Bram Industries is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Bram Industries Ltd.'s Growth

Over the last three years, Bram Industries Ltd. has shrunk its earnings per share by 45% per year. It saw its revenue drop 4.6% over the last year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Bram Industries Ltd. Been A Good Investment?

Given the total shareholder loss of 33% over three years, many shareholders in Bram Industries Ltd. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we noted earlier, Bram Industries pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. Add to that declining EPS growth, and you have the perfect recipe for shareholder irritation. 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. We did our research and identified 3 warning signs (and 2 which are a bit concerning) in Bram Industries we think you should know about.

Important note: Bram Industries is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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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