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华尔街日报We Discuss Whether Alrov Properties and Lodgings Ltd.'s (TLV:ALRPR) CEO Is Due For A Pay Rise
Key Insights
- Alrov Properties and Lodgings' Annual General Meeting to take place on 30th of December
- Total pay for CEO Shmuel Ben Moshe includes ₪1.98m salary
- The total compensation is 44% less than the average for the industry
- Alrov Properties and Lodgings' total shareholder return over the past three years was 50% while its EPS grew by 41% over the past three years
Shareholders will be pleased by the impressive results for Alrov Properties and Lodgings Ltd. (TLV:ALRPR) recently and CEO Shmuel Ben Moshe has played a key role. At the upcoming AGM on 30th of December, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.
Check out our latest analysis for Alrov Properties and Lodgings
Comparing Alrov Properties and Lodgings Ltd.'s CEO Compensation With The Industry
At the time of writing, our data shows that Alrov Properties and Lodgings Ltd. has a market capitalization of ₪5.9b, and reported total annual CEO compensation of ₪2.2m for the year to December 2024. That's a fairly small increase of 3.8% over the previous year. Notably, the salary which is ₪1.98m, represents most of the total compensation being paid.
In comparison with other companies in the Israel Real Estate industry with market capitalizations ranging from ₪3.2b to ₪10b, the reported median CEO total compensation was ₪3.9m. Accordingly, Alrov Properties and Lodgings pays its CEO under the industry median.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | ₪2.0m | ₪1.9m | 90% |
| Other | ₪223k | ₪201k | 10% |
| Total Compensation | ₪2.2m | ₪2.1m | 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, Alrov Properties and Lodgings has allocated a higher percentage of pay to salary in comparison to the wider industry. 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 Alrov Properties and Lodgings Ltd.'s Growth Numbers
Alrov Properties and Lodgings Ltd. has seen its earnings per share (EPS) increase by 41% a year over the past three years. Its revenue is up 120% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Alrov Properties and Lodgings Ltd. Been A Good Investment?
We think that the total shareholder return of 50%, over three years, would leave most Alrov Properties and Lodgings Ltd. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
Some shareholders will probably be more lenient on CEO compensation in the upcoming AGM given the pleasing performance of the company recently. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.
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. We did our research and spotted 1 warning sign for Alrov Properties and Lodgings that investors should look into moving forward.
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.