We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Ashot Ashkelon Industries Ltd.'s (TLV:ASHO) CEO For Now

Key Insights

• Ashot Ashkelon Industries will host its Annual General Meeting on 18th of September
• Salary of ₪1.07m is part of CEO Eli Damari's total remuneration
• The overall pay is 397% above the industry average
• Ashot Ashkelon Industries' total shareholder return over the past three years was 353% while its EPS grew by 97% over the past three years

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CEO Eli Damari has done a decent job of delivering relatively good performance at Ashot Ashkelon Industries Ltd. (TLV:ASHO) recently. As shareholders go into the upcoming AGM on 18th of September, 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 Ashot Ashkelon Industries

Comparing Ashot Ashkelon Industries Ltd.'s CEO Compensation With The Industry

According to our data, Ashot Ashkelon Industries Ltd. has a market capitalization of ₪1.8b, and paid its CEO total annual compensation worth ₪2.2m over the year to December 2024. That's just a smallish increase of 4.9% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₪1.1m.

In comparison with other companies in the Israel Aerospace & Defense industry with market capitalizations ranging from ₪666m to ₪2.7b, the reported median CEO total compensation was ₪440k. Accordingly, our analysis reveals that Ashot Ashkelon Industries Ltd. pays Eli Damari north of the industry median.

On an industry level, roughly 57% of total compensation represents salary and 43% is other remuneration. Ashot Ashkelon Industries pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Ashot Ashkelon Industries Ltd.'s Growth

Ashot Ashkelon Industries Ltd. has seen its earnings per share (EPS) increase by 97% a year over the past three years. It achieved revenue growth of 29% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Ashot Ashkelon Industries Ltd. Been A Good Investment?

We think that the total shareholder return of 353%, over three years, would leave most Ashot Ashkelon Industries 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...

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

So you may want to check if insiders are buying Ashot Ashkelon Industries shares with their own money (free access).

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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.