Here's Why Shareholders Should Examine Skyline Investments Inc.'s (TLV:SKLN) CEO Compensation Package More Closely

Key Insights

• Skyline Investments' Annual General Meeting to take place on 30th of September
• Salary of CA$487.0k is part of CEO Blake Lyon's total remuneration
• The total compensation is 148% higher than the average for the industry
• Over the past three years, Skyline Investments' EPS fell by 105% and over the past three years, the total loss to shareholders 24%

The results at Skyline Investments Inc. (TLV:SKLN) have been quite disappointing recently and CEO Blake Lyon bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 30th of September. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for Skyline Investments

Comparing Skyline Investments Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Skyline Investments Inc. has a market capitalization of ₪264m, and reported total annual CEO compensation of CA$2.0m for the year to December 2023. We note that's an increase of 26% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$487k.

For comparison, other companies in the Israel Real Estate industry with market capitalizations below ₪755m, reported a median total CEO compensation of CA$789k. This suggests that Blake Lyon is paid more than the median for the industry. Furthermore, Blake Lyon directly owns ₪3.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	CA$487k	CA$475k	25%
Other	CA$1.5m	CA$1.1m	75%
Total Compensation	CA$2.0m	CA$1.6m	100%

Speaking on an industry level, nearly 53% of total compensation represents salary, while the remainder of 47% is other remuneration. Skyline Investments sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Skyline Investments Inc.'s Growth Numbers

Over the last three years, Skyline Investments Inc. has shrunk its earnings per share by 105% per year. Its revenue is down 16% over the previous year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Skyline Investments Inc. Been A Good Investment?

Given the total shareholder loss of 24% over three years, many shareholders in Skyline Investments Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

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 3 warning signs for Skyline Investments you should be aware of, and 2 of them are concerning.

Switching gears from Skyline Investments, 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.