In 2008 Shai Tauber was appointed CEO of Isras Investment Company Ltd (TLV:ISRS). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Isras Investment
How Does Shai Tauber's Compensation Compare With Similar Sized Companies?
According to our data, Isras Investment Company Ltd has a market capitalization of ₪4.4b, and paid its CEO total annual compensation worth ₪1.8m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₪526k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from ₪3.4b to ₪11b, and discovered that the median CEO total compensation of that group was ₪3.8m.
A first glance this seems like a real positive for shareholders, since Shai Tauber is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Isras Investment has changed from year to year.
Is Isras Investment Company Ltd Growing?
Over the last three years Isras Investment Company Ltd has grown its earnings per share (EPS) by an average of 6.2% per year (using a line of best fit). Its revenue is up 64% over last year.
It's hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. I wouldn't say this is necessarily top notch growth, but it is certainly promising. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Isras Investment Company Ltd Been A Good Investment?
I think that the total shareholder return of 132%, over three years, would leave most Isras Investment Company 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.
In Summary...
It looks like Isras Investment Company Ltd pays its CEO less than similar sized companies.
Shai Tauber is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. Whatever your view on compensation, you might want to check if insiders are buying or selling Isras Investment shares (free trial).
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.
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