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Avishai Abrahami became the CEO of Wix.com Ltd. (NASDAQ:WIX) in 2010. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Avishai Abrahami’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Wix.com Ltd. has a market cap of US$7.1b, and is paying total annual CEO compensation of US$443k. (This is based on the year to December 2018). That’s a modest increase of 0.7% on the prior year year. We think total compensation is more important but we note that the CEO salary is lower, at US$357k. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.9m.
Most shareholders would consider it a positive that Avishai Abrahami takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Wix.com, below.
Is Wix.com Ltd. Growing?
Over the last three years Wix.com Ltd. has grown its earnings per share (EPS) by an average of 14% per year (using a line of best fit). Its revenue is up 36% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. You might want to check this free visual report on analyst forecasts for future earnings.
Has Wix.com Ltd. Been A Good Investment?
Boasting a total shareholder return of 426% over three years, Wix.com Ltd. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
It looks like Wix.com Ltd. pays its CEO less than similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. The strong history of shareholder returns might even have some thinking that Avishai Abrahami deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. Shareholders may want to check for free if Wix.com insiders are buying or selling shares.
Important note: Wix.com may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.