Zigmund Bluvband is the CEO of A.L.D. Advanced Logistics Developments Ltd. (TLV:ALD), and in this article, we analyze the executive’s compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for A.L.D. Advanced Logistics Developments.
See our latest analysis for A.L.D. Advanced Logistics Developments
Comparing A.L.D. Advanced Logistics Developments Ltd.’s CEO Compensation With the industry
At the time of writing, our data shows that A.L.D. Advanced Logistics Developments Ltd. has a market capitalization of ₪15m, and reported total annual CEO compensation of ₪789k for the year to December 2019. That’s a notable decrease of 25% on last year. In particular, the salary of ₪488.0k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations under ₪681m, the reported median total CEO compensation was ₪274k. This suggests that Zigmund Bluvband is paid more than the median for the industry. Moreover, Zigmund Bluvband also holds ₪5.6m worth of A.L.D. Advanced Logistics Developments stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2019 | 2016 | Proportion (2019) |
| Salary | ₪488k | ₪630k | 62% |
| Other | ₪301k | ₪419k | 38% |
| Total Compensation | ₪789k | ₪1.0m | 100% |
On an industry level, roughly 76% of total compensation represents salary and 24% is other remuneration. In A.L.D. Advanced Logistics Developments’ case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A.L.D. Advanced Logistics Developments Ltd.’s Growth
Over the last three years, A.L.D. Advanced Logistics Developments Ltd. has shrunk its earnings per share by 65% per year. The trailing twelve months of revenue was pretty much the same as the prior period.
Overall this is not a very positive result for shareholders. And the flat revenue hardly impresses. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has A.L.D. Advanced Logistics Developments Ltd. Been A Good Investment?
Given the total shareholder loss of 49% over three years, many shareholders in A.L.D. Advanced Logistics Developments Ltd. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
To Conclude…
As we touched on above, A.L.D. Advanced Logistics Developments Ltd. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Disappointingly, share price gains over the last three years have failed to materialize. Arguably worse, we’ve been waiting for positive EPS growth for the last three years. Overall, with such poor performance, shareholder’s would probably have questions if the company decided to give the CEO a raise.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That’s why we did some digging and identified 1 warning sign for A.L.D. Advanced Logistics Developments that investors should think about before committing capital to this stock.
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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