Shareholders May Be A Bit More Conservative With ReWalk Robotics Ltd.'s (NASDAQ:RWLK) CEO Compensation For Now

Key Insights

• ReWalk Robotics' Annual General Meeting to take place on 13th of September
• Salary of US$419.3k is part of CEO Larry Jasinski's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, ReWalk Robotics' EPS grew by 59% and over the past three years, the total loss to shareholders 35%

In the past three years, the share price of ReWalk Robotics Ltd. (NASDAQ:RWLK) 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 13th of September could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for ReWalk Robotics

How Does Total Compensation For Larry Jasinski Compare With Other Companies In The Industry?

At the time of writing, our data shows that ReWalk Robotics Ltd. has a market capitalization of US$43m, and reported total annual CEO compensation of US$854k for the year to December 2022. That's a slight decrease of 7.9% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$419k.

On comparing similar-sized companies in the American Medical Equipment industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$707k. This suggests that ReWalk Robotics remunerates its CEO largely in line with the industry average. Furthermore, Larry Jasinski directly owns US$189k worth of shares in the company.

Component	2022	2021	Proportion (2022)
Salary	US$419k	US$400k	49%
Other	US$435k	US$527k	51%
Total Compensation	US$854k	US$928k	100%

Talking in terms of the industry, salary represented approximately 24% of total compensation out of all the companies we analyzed, while other remuneration made up 76% of the pie. It's interesting to note that ReWalk Robotics pays out a greater portion of remuneration through salary, compared to the industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at ReWalk Robotics Ltd.'s Growth Numbers

ReWalk Robotics Ltd.'s earnings per share (EPS) grew 59% per year over the last three years. Revenue was pretty flat on last year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has ReWalk Robotics Ltd. Been A Good Investment?

With a total shareholder return of -35% over three years, ReWalk Robotics Ltd. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for ReWalk Robotics that investors should look into moving forward.

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.

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.