How Much Did Electra Real Estate's (TLV:ELCRE) CEO Pocket Last Year?

Gil Rushinek has been the CEO of Electra Real Estate Ltd. (TLV:ELCRE) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Electra Real Estate pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Electra Real Estate

Comparing Electra Real Estate Ltd.'s CEO Compensation With the industry

At the time of writing, our data shows that Electra Real Estate Ltd. has a market capitalization of ₪1.4b, and reported total annual CEO compensation of ₪3.4m for the year to December 2019. We note that's an increase of 37% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₪1.5m.

On comparing similar companies from the same industry with market caps ranging from ₪650m to ₪2.6b, we found that the median CEO total compensation was ₪2.1m. This suggests that Gil Rushinek is paid more than the median for the industry. Moreover, Gil Rushinek also holds ₪840k worth of Electra Real Estate stock directly under their own name.

Speaking on an industry level, nearly 55% of total compensation represents salary, while the remainder of 45% is other remuneration. In Electra Real Estate's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Electra Real Estate Ltd.'s Growth

Electra Real Estate Ltd.'s earnings per share (EPS) grew 143% per year over the last three years. It achieved revenue growth of 15% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Electra Real Estate Ltd. Been A Good Investment?

We think that the total shareholder return of 256%, over three years, would leave most Electra Real Estate Ltd. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

As we noted earlier, Electra Real Estate pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, Electra Real Estate has produced strong EPS growth and shareholder returns over the last three years. So, in acknowledgment of the overall excellent performance, we believe CEO compensation is appropriate. And given most shareholders are probably very happy with recent returns, they might even think that Gil deserves a raise!

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for Electra Real Estate (1 shouldn't be ignored!) that you should be aware of before investing here.

Important note: Electra Real Estate 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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