Increases to CEO Compensation Might Be Put On Hold For Now at IMCO Industries Ltd. (TLV:IMCO)

Key Insights

• IMCO Industries to hold its Annual General Meeting on 31st of December
• CEO Ariel Kendal's total compensation includes salary of ₪1.34m
• The total compensation is 528% higher than the average for the industry
• IMCO Industries' EPS grew by 76% over the past three years while total shareholder return over the past three years was 638%

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Performance at IMCO Industries Ltd. (TLV:IMCO) has been reasonably good and CEO Ariel Kendal has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 31st of December. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for IMCO Industries

Comparing IMCO Industries Ltd.'s CEO Compensation With The Industry

Our data indicates that IMCO Industries Ltd. has a market capitalization of ₪384m, and total annual CEO compensation was reported as ₪2.3m for the year to December 2024. That's a notable increase of 17% on last year. We note that the salary of ₪1.34m makes up a sizeable portion of the total compensation received by the CEO.

For comparison, other companies in the Israel Aerospace & Defense industry with market capitalizations below ₪637m, reported a median total CEO compensation of ₪365k. Accordingly, our analysis reveals that IMCO Industries Ltd. pays Ariel Kendal north of the industry median.

Component	2024	2023	Proportion (2024)
Salary	₪1.3m	₪1.2m	59%
Other	₪951k	₪764k	41%
Total Compensation	₪2.3m	₪2.0m	100%

On an industry level, roughly 56% of total compensation represents salary and 44% is other remuneration. IMCO Industries is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at IMCO Industries Ltd.'s Growth Numbers

IMCO Industries Ltd.'s earnings per share (EPS) grew 76% per year over the last three years. In the last year, its revenue is up 24%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 IMCO Industries Ltd. Been A Good Investment?

Most shareholders would probably be pleased with IMCO Industries Ltd. for providing a total return of 638% over three years. 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.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 4 warning signs for IMCO Industries (of which 2 are a bit concerning!) that you should know about in order to have a holistic understanding of the 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.