Shareholders May Not Be So Generous With El Al Israel Airlines Ltd.'s (TLV:ELAL) CEO Compensation And Here's Why

Key Insights

• El Al Israel Airlines' Annual General Meeting to take place on 31st of December
• Salary of US$631.5k is part of CEO Dina Ben Ganancia's total remuneration
• The total compensation is 803% higher than the average for the industry
• El Al Israel Airlines' EPS grew by 47% over the past three years while total shareholder return over the past three years was 558%

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CEO Dina Ben Ganancia has done a decent job of delivering relatively good performance at El Al Israel Airlines Ltd. (TLV:ELAL) recently. 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.

Check out our latest analysis for El Al Israel Airlines

How Does Total Compensation For Dina Ben Ganancia Compare With Other Companies In The Industry?

Our data indicates that El Al Israel Airlines Ltd. has a market capitalization of ₪9.3b, and total annual CEO compensation was reported as US$1.8m for the year to December 2024. We note that's an increase of 9.5% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$632k.

On comparing similar companies from the Israel Airlines industry with market caps ranging from ₪6.4b to ₪20b, we found that the median CEO total compensation was US$197k. Accordingly, our analysis reveals that El Al Israel Airlines Ltd. pays Dina Ben Ganancia north of the industry median.

Component	2024	2023	Proportion (2024)
Salary	US$632k	US$595k	35%
Other	US$1.1m	US$1.0m	65%
Total Compensation	US$1.8m	US$1.6m	100%

On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. El Al Israel Airlines pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at El Al Israel Airlines Ltd.'s Growth Numbers

El Al Israel Airlines Ltd.'s earnings per share (EPS) grew 47% per year over the last three years. Its revenue is up 6.7% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 El Al Israel Airlines Ltd. Been A Good Investment?

Boasting a total shareholder return of 558% over three years, El Al Israel Airlines Ltd. has done well by shareholders. 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.

To Conclude...

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 can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for El Al Israel Airlines that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. 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. 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.