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Is A.L.D. Advanced Logistics Developments Ltd.’s (TLV:ALD) CEO Pay Fair? – Simply Wall St News

Zigmund Bluvband is the CEO of A.L.D. Advanced Logistics Developments Ltd. (TLV:ALD). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for A.L.D. Advanced Logistics Developments

How Does Zigmund Bluvband’s Compensation Compare With Similar Sized Companies?

Our data indicates that A.L.D. Advanced Logistics Developments Ltd. is worth ₪10m, and total annual CEO compensation was reported as ₪789k for the year to December 2019. We think total compensation is more important but we note that the CEO salary is lower, at ₪488k. We examined a group of similar sized companies, with market capitalizations of below ₪704m. The median CEO total compensation in that group is ₪1.4m.

Next, let’s break down remuneration compositions to understand how the industry and company compare with each other. Talking in terms of the sector, salary represented approximately 94% of total compensation out of all the companies we analysed, while other remuneration made up 5.6% of the pie. It’s interesting to note that A.L.D. Advanced Logistics Developments allocates a smaller portion of compensation to salary in comparison to the broader industry.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business. The graphic below shows how CEO compensation at A.L.D. Advanced Logistics Developments has changed from year to year.

TASE:ALD CEO Compensation May 23rd 2020
TASE:ALD CEO Compensation May 23rd 2020

Is A.L.D. Advanced Logistics Developments Ltd. Growing?

On average over the last three years, A.L.D. Advanced Logistics Developments Ltd. has shrunk earnings per share by 77% each year (measured with a line of best fit). In the last year, its revenue is up 10%.

Sadly for shareholders, earnings per share are actually down, over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don’t have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has A.L.D. Advanced Logistics Developments Ltd. Been A Good Investment?

Given the total loss of 66% over three years, many shareholders in A.L.D. Advanced Logistics Developments Ltd. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

A.L.D. Advanced Logistics Developments Ltd. is currently paying its CEO below what is normal for companies of its size.

Zigmund Bluvband is paid less than CEOs of similar size companies, but the company isn’t growing and total shareholder returns have been disappointing. We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. On another note, A.L.D. Advanced Logistics Developments has 2 warning signs (and 1 which shouldn’t be ignored) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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. Thank you for reading.

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