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华尔街日报Should Shareholders Reconsider Ilex Medical Ltd's (TLV:ILX) CEO Compensation Package?
Key Insights
- Ilex Medical's Annual General Meeting to take place on 28th of December
- CEO Boaz Yehazkel's total compensation includes salary of ₪1.66m
- The total compensation is 198% higher than the average for the industry
- Over the past three years, Ilex Medical's EPS fell by 25% and over the past three years, the total loss to shareholders 28%
Ilex Medical Ltd (TLV:ILX) has not performed well recently and CEO Boaz Yehazkel will probably need to up their game. At the upcoming AGM on 28th of December, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.
View our latest analysis for Ilex Medical
Comparing Ilex Medical Ltd's CEO Compensation With The Industry
Our data indicates that Ilex Medical Ltd has a market capitalization of ₪738m, and total annual CEO compensation was reported as ₪2.2m for the year to December 2024. That's a notable increase of 11% on last year. In particular, the salary of ₪1.66m, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the Israel Healthcare industry with market capitalizations ranging from ₪320m to ₪1.3b, the reported median CEO total compensation was ₪751k. This suggests that Boaz Yehazkel is paid more than the median for the industry.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | ₪1.7m | ₪1.5m | 74% |
| Other | ₪576k | ₪540k | 26% |
| Total Compensation | ₪2.2m | ₪2.0m | 100% |
Talking in terms of the industry, salary represented approximately 80% of total compensation out of all the companies we analyzed, while other remuneration made up 20% of the pie. Our data reveals that Ilex Medical allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Ilex Medical Ltd's Growth
Over the last three years, Ilex Medical Ltd has shrunk its earnings per share by 25% per year. Its revenue is down 4.3% over the previous year.
Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. 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 Ilex Medical Ltd Been A Good Investment?
Given the total shareholder loss of 28% over three years, many shareholders in Ilex Medical Ltd are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Ilex Medical that investors should think about before committing capital to this stock.
Switching gears from Ilex Medical, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.