Our Take On Computer Direct Group's (TLV:CMDR) CEO Salary

Adi Eyal is the CEO of Computer Direct Group Ltd. (TLV:CMDR), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Computer Direct Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Computer Direct Group

Comparing Computer Direct Group Ltd.'s CEO Compensation With the industry

Our data indicates that Computer Direct Group Ltd. has a market capitalization of ₪781m, and total annual CEO compensation was reported as ₪3.6m for the year to December 2019. That's a notable increase of 8.9% on last year. Notably, the salary which is ₪2.59m, represents most of the total compensation being paid.

On examining similar-sized companies in the industry with market capitalizations between ₪325m and ₪1.3b, we discovered that the median CEO total compensation of that group was ₪997k. Hence, we can conclude that Adi Eyal is remunerated higher than the industry median. Furthermore, Adi Eyal directly owns ₪600m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 76% of total compensation represents salary and 24% is other remuneration. There isn't a significant difference between Computer Direct Group and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Computer Direct Group Ltd.'s Growth Numbers

Over the past three years, Computer Direct Group Ltd. has seen its earnings per share (EPS) grow by 1.4% per year. In the last year, its revenue is up 7.7%.

We're not particularly impressed by the revenue growth, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Computer Direct Group Ltd. Been A Good Investment?

Most shareholders would probably be pleased with Computer Direct Group Ltd. for providing a total return of 203% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

As we touched on above, Computer Direct Group Ltd. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Still, shareholder returns for the company are very impressive for the last three years. That's why we were hoping EPS growth would match this growth, but sadly that is not the case. So, although we would've liked to see stronger EPS growth, positive investor returns lead us to believe CEO compensation is reasonable.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 4 warning signs for Computer Direct Group (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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