Nasdaq
華爾街日報Shareholders Will Probably Hold Off On Increasing Meitav Investment House Ltd's (TLV:MTAV) CEO Compensation For The Time Being
Key Insights
- Meitav Investment House's Annual General Meeting to take place on 1st of January
- Salary of ₪2.00m is part of CEO Ilan Raviv's total remuneration
- The total compensation is 336% higher than the average for the industry
- Over the past three years, Meitav Investment House's EPS grew by 92% and over the past three years, the total shareholder return was 1,048%
Performance at Meitav Investment House Ltd (TLV:MTAV) has been reasonably good and CEO Ilan Raviv 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 1st of January. However, some shareholders may still want to keep CEO compensation within reason.
See our latest analysis for Meitav Investment House
How Does Total Compensation For Ilan Raviv Compare With Other Companies In The Industry?
At the time of writing, our data shows that Meitav Investment House Ltd has a market capitalization of ₪8.9b, and reported total annual CEO compensation of ₪3.7m for the year to December 2024. This was the same amount the CEO received in the prior year. We note that the salary of ₪2.00m makes up a sizeable portion of the total compensation received by the CEO.
On examining similar-sized companies in the Israel Capital Markets industry with market capitalizations between ₪6.4b and ₪20b, we discovered that the median CEO total compensation of that group was ₪852k. Accordingly, our analysis reveals that Meitav Investment House Ltd pays Ilan Raviv north of the industry median. What's more, Ilan Raviv holds ₪136m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2024 | 2024 | Proportion (2024) |
| Salary | ₪2.0m | ₪2.0m | 54% |
| Other | ₪1.7m | ₪1.7m | 46% |
| Total Compensation | ₪3.7m | ₪3.7m | 100% |
Speaking on an industry level, nearly 85% of total compensation represents salary, while the remainder of 15% is other remuneration. Meitav Investment House sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Meitav Investment House Ltd's Growth
Meitav Investment House Ltd has seen its earnings per share (EPS) increase by 92% a year over the past three years. It achieved revenue growth of 24% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 Meitav Investment House Ltd Been A Good Investment?
We think that the total shareholder return of 1,048%, over three years, would leave most Meitav Investment House Ltd shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar 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 pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 2 which don't sit too well with us) in Meitav Investment House we think you should know about.
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.