Roman Rozental became the CEO of MirLand Development Corporation Plc (TLV:MLD) in 2010, 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 evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for MirLand Development
Comparing MirLand Development Corporation Plc's CEO Compensation With the industry
At the time of writing, our data shows that MirLand Development Corporation Plc has a market capitalization of ₪2.4m, and reported total annual CEO compensation of US$649k for the year to December 2019. That's mostly flat as compared to the prior year's compensation. In particular, the salary of US$523.1k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations under ₪643m, the reported median total CEO compensation was US$448k. This suggests that Roman Rozental is paid more than the median for the industry.
| Component | 2019 | 2016 | Proportion (2019) |
| Salary | US$523k | US$446k | 81% |
| Other | US$126k | US$191k | 19% |
| Total Compensation | US$649k | US$637k | 100% |
On an industry level, roughly 55% of total compensation represents salary and 45% is other remuneration. According to our research, MirLand Development has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at MirLand Development Corporation Plc's Growth Numbers
Over the last three years, MirLand Development Corporation Plc has shrunk its earnings per share by 106% per year. It achieved revenue growth of 3.6% over the last year.
Overall this is not a very positive result for shareholders. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has MirLand Development Corporation Plc Been A Good Investment?
Given the total shareholder loss of 99% over three years, many shareholders in MirLand Development Corporation Plc are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
As we noted earlier, MirLand Development pays its CEO higher than the norm for similar-sized companies belonging to the same industry. This doesn't look good against shareholder returns, which have been negative for the past three years. What's equally worrying is that the company isn't growing by our analysis. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO a raise.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for MirLand Development that you should be aware of before investing.
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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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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About TASE:MLD-M
MirLand Development
Engages in the acquisition, development, construction, rental, and sale of commercial and residential real estate properties in Russia.
Moderate and slightly overvalued.
