Asi Levinger became the CEO of Energix – Renewable Energies Ltd (TLV:ENRG) in 2009, and we think it’s a good time to look at the executive’s compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Energix – Renewable Energies.
How Does Total Compensation For Asi Levinger Compare With Other Companies In The Industry?
At the time of writing, our data shows that Energix – Renewable Energies Ltd has a market capitalization of ₪5.6b, and reported total annual CEO compensation of ₪4.4m for the year to December 2019. We note that’s an increase of 35% above last year. While this analysis focuses on total compensation, it’s worth acknowledging that the salary portion is lower, valued at ₪1.3m.
On examining similar-sized companies in the industry with market capitalizations between ₪3.4b and ₪11b, we discovered that the median CEO total compensation of that group was ₪417k. This suggests that Asi Levinger is paid more than the median for the industry. Moreover, Asi Levinger also holds ₪41m worth of Energix – Renewable Energies stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
On a industry level, around 67% of total compensation represents salary and 33% is other remuneration. Energix – Renewable Energies pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Energix – Renewable Energies Ltd’s Growth
Energix – Renewable Energies Ltd has seen its earnings per share (EPS) increase by 215% a year over the past three years. It achieved revenue growth of 24% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. While we don’t have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Energix – Renewable Energies Ltd Been A Good Investment?
Boasting a total shareholder return of 320% over three years, Energix – Renewable Energies 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.
As previously discussed, Asi is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But earnings growth and shareholder returns have been top-notch for the past three years. Considering such exceptional results for the company, we’d venture to say CEO compensation is fair. And given most shareholders are probably very happy with recent returns, they might even think that Asi deserves a raise!
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 4 warning signs for Energix – Renewable Energies (2 are significant!) that you should be aware of before investing here.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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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