Larry Jasinski has been the CEO of ReWalk Robotics Ltd. ( NASDAQ:RWLK ) since 2012. 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 Larry Jasinski’s Compensation Compare With Similar Sized Companies?
Our data indicates that ReWalk Robotics Ltd. is worth US$11m, and total annual CEO compensation is US$771k. (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$378k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$304k.
As you can see, Larry Jasinski is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean ReWalk Robotics 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 ReWalk Robotics has changed over time.
Is ReWalk Robotics Ltd. Growing?
ReWalk Robotics Ltd. has increased its earnings per share (EPS) by an average of 30% a year, over the last three years Its revenue is down -17% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has ReWalk Robotics Ltd. Been A Good Investment?
Since shareholders would have lost about 99% over three years, some ReWalk Robotics Ltd. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We examined the amount ReWalk Robotics Ltd. pays its CEO, and compared it to the amount paid by similar sized companies. 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. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling ReWalk Robotics shares (free trial).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue .
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 .