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Shlomi Cohen became the CEO of On Track Innovations Ltd. (NASDAQ:OTIV) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Shlomi Cohen’s Compensation Compare With Similar Sized Companies?
According to our data, On Track Innovations Ltd. has a market capitalization of US$33m, and pays its CEO total annual compensation worth US$886k. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$417k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$300k.
As you can see, Shlomi Cohen is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean On Track Innovations Ltd. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at On Track Innovations has changed over time.
Is On Track Innovations Ltd. Growing?
Over the last three years On Track Innovations Ltd. has grown its earnings per share (EPS) by an average of 70% per year (using a line of best fit). It achieved revenue growth of 19% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has On Track Innovations Ltd. Been A Good Investment?
I think that the total shareholder return of 52%, over three years, would leave most On Track Innovations Ltd. shareholders smiling. 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.
We compared total CEO remuneration at On Track Innovations Ltd. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if On Track Innovations insiders are buying or selling shares.
Important note: On Track Innovations 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.