We Think The Compensation For Isras Investment Company Ltd's (TLV:ISRS) CEO Looks About Right

Key Insights

• Isras Investment to hold its Annual General Meeting on 5th of January
• CEO Adi Dana's total compensation includes salary of ₪1.89m
• The total compensation is 32% less than the average for the industry
• Isras Investment's total shareholder return over the past three years was 72% while its EPS was down 21% over the past three years

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

The performance at Isras Investment Company Ltd (TLV:ISRS) has been rather lacklustre of late and shareholders may be wondering what CEO Adi Dana is planning to do about this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 5th of January. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We think CEO compensation looks appropriate given the data we have put together.

Check out our latest analysis for Isras Investment

Comparing Isras Investment Company Ltd's CEO Compensation With The Industry

According to our data, Isras Investment Company Ltd has a market capitalization of ₪4.8b, and paid its CEO total annual compensation worth ₪2.7m over the year to December 2024. There was no change in the compensation compared to last year. In particular, the salary of ₪1.89m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the Israel Real Estate industry with market caps ranging from ₪3.2b to ₪10b, we found that the median CEO total compensation was ₪3.9m. This suggests that Adi Dana is paid below the industry median.

Component	2024	2024	Proportion (2024)
Salary	₪1.9m	₪1.9m	70%
Other	₪800k	₪800k	30%
Total Compensation	₪2.7m	₪2.7m	100%

Talking in terms of the industry, salary represented approximately 62% of total compensation out of all the companies we analyzed, while other remuneration made up 38% of the pie. According to our research, Isras Investment has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Isras Investment Company Ltd's Growth

Over the last three years, Isras Investment Company Ltd has shrunk its earnings per share by 21% per year. In the last year, its revenue is down 17%.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Isras Investment Company Ltd Been A Good Investment?

Most shareholders would probably be pleased with Isras Investment Company Ltd for providing a total return of 72% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean these strong returns may not continue. Shareholders might want to question the board about these concerns, and revisit their investment thesis for the company.

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 Isras Investment (of which 2 can't be ignored!) 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.