Here's Why Shareholders May Want To Be Cautious With Increasing Bank Hapoalim B.M.'s (TLV:POLI) CEO Pay Packet

Key Insights

• Bank Hapoalim B.M's Annual General Meeting to take place on 21st of August
• Total pay for CEO Yadin Antebi includes ₪2.16m salary
• Total compensation is 401% above industry average
• Bank Hapoalim B.M's EPS grew by 19% over the past three years while total shareholder return over the past three years was 110%

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Under the guidance of CEO Yadin Antebi, Bank Hapoalim B.M. (TLV:POLI) has performed reasonably well recently. As shareholders go into the upcoming AGM on 21st of August, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Bank Hapoalim B.M

How Does Total Compensation For Yadin Antebi Compare With Other Companies In The Industry?

According to our data, Bank Hapoalim B.M. has a market capitalization of ₪84b, and paid its CEO total annual compensation worth ₪4.2m over the year to December 2024. We note that's an increase of 15% above last year. In particular, the salary of ₪2.16m, makes up a fairly large portion of the total compensation being paid to the CEO.

In comparison with other companies in the Israeli Banks industry with market capitalizations over ₪27b, the reported median total CEO compensation was ₪838k. This suggests that Yadin Antebi is paid more than the median for the industry. Furthermore, Yadin Antebi directly owns ₪15m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 71% of total compensation represents salary and 29% is other remuneration. Bank Hapoalim B.M sets aside a smaller share of compensation for salary, in comparison to the overall 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.

A Look at Bank Hapoalim B.M.'s Growth Numbers

Bank Hapoalim B.M.'s earnings per share (EPS) grew 19% per year over the last three years. Its revenue is up 9.4% 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. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Bank Hapoalim B.M. Been A Good Investment?

Most shareholders would probably be pleased with Bank Hapoalim B.M. for providing a total return of 110% over three years. 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.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Bank Hapoalim B.M that investors should look into moving forward.

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.