What Can We Make Of Maslavi Construction's (TLV:MSLA) CEO Compensation?

This article will reflect on the compensation paid to Eran Mazor who has served as CEO of Maslavi Construction Company Ltd (TLV:MSLA) since 2018. 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 Maslavi Construction

Comparing Maslavi Construction Company Ltd's CEO Compensation With the industry

Our data indicates that Maslavi Construction Company Ltd has a market capitalization of ₪103m, and total annual CEO compensation was reported as ₪1.9m for the year to December 2019. Notably, that's an increase of 10% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at ₪660k.

For comparison, other companies in the industry with market capitalizations below ₪670m, reported a median total CEO compensation of ₪1.5m. Hence, we can conclude that Eran Mazor is remunerated higher than the industry median.

Speaking on an industry level, nearly 56% of total compensation represents salary, while the remainder of 44% is other remuneration. Maslavi Construction sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Maslavi Construction Company Ltd's Growth

Over the past three years, Maslavi Construction Company Ltd has seen its earnings per share (EPS) grow by 85% per year. Its revenue is up 60% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Maslavi Construction Company Ltd Been A Good Investment?

With a total shareholder return of 11% over three years, Maslavi Construction Company Ltd shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

As we noted earlier, Maslavi Construction pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, we must not forget that the EPS growth has been very strong over three years. We also note that, over the same time frame, shareholder returns haven't been bad. While it may be worth researching further, we don't see a problem with the high CEO pay, given the good EPS growth.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for Maslavi Construction 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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