Skyline Investments Inc.'s (TLV:SKLN) CEO Will Probably Find It Hard To See A Huge Raise This Year

In the past three years, the share price of Skyline Investments Inc. (TLV:SKLN) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 26 December 2022 could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Skyline Investments

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

According to our data, Skyline Investments Inc. has a market capitalization of ₪275m, and paid its CEO total annual compensation worth CA$614k over the year to December 2021. Notably, that's an increase of 16% over the year before. Notably, the salary which is CA$415.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Israel Real Estate industry with market capitalizations below ₪690m, we found that the median total CEO compensation was CA$612k. From this we gather that Blake Lyon is paid around the median for CEOs in the industry. Furthermore, Blake Lyon directly owns ₪3.3m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2021	2020	Proportion (2021)
Salary	CA$415k	CA$415k	68%
Other	CA$199k	CA$116k	32%
Total Compensation	CA$614k	CA$531k	100%

On an industry level, roughly 59% of total compensation represents salary and 41% is other remuneration. Skyline Investments pays out 68% of remuneration in the form of a salary, significantly higher than the industry average. 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.

Skyline Investments Inc.'s Growth

Skyline Investments Inc. has seen its earnings per share (EPS) increase by 63% a year over the past three years. In the last year, its revenue is up 5.5%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Skyline Investments Inc. Been A Good Investment?

The return of -42% over three years would not have pleased Skyline Investments Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with 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. We identified 2 warning signs for Skyline Investments (1 is a bit unpleasant!) that you should be aware of before investing here.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.