We Think Shareholders Will Probably Be Generous With Ashot Ashkelon Industries Ltd.'s (TLV:ASHO) CEO Compensation

Key Insights

• Ashot Ashkelon Industries' Annual General Meeting to take place on 31st of December
• Total pay for CEO Eli Damari includes ₪1.02m salary
• The total compensation is similar to the average for the industry
• Ashot Ashkelon Industries' EPS grew by 52% over the past three years while total shareholder return over the past three years was 262%

We have been pretty impressed with the performance at Ashot Ashkelon Industries Ltd. (TLV:ASHO) recently and CEO Eli Damari deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 31st of December. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out 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 ₪1.3b, and paid its CEO total annual compensation worth ₪2.1m over the year to December 2023. We note that's an increase of 72% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₪1.0m.

In comparison with other companies in the Israel Aerospace & Defense industry with market capitalizations ranging from ₪729m to ₪2.9b, the reported median CEO total compensation was ₪2.8m. So it looks like Ashot Ashkelon Industries compensates Eli Damari in line with the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	₪1.0m	₪945k	49%
Other	₪1.1m	₪268k	51%
Total Compensation	₪2.1m	₪1.2m	100%

On an industry level, roughly 61% of total compensation represents salary and 39% is other remuneration. Ashot Ashkelon Industries sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Ashot Ashkelon Industries Ltd.'s Growth Numbers

Ashot Ashkelon Industries Ltd.'s earnings per share (EPS) grew 52% per year over the last three years. In the last year, its revenue is up 14%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Ashot Ashkelon Industries Ltd. Been A Good Investment?

Boasting a total shareholder return of 262% over three years, Ashot Ashkelon Industries Ltd. has done well by shareholders. 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.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Ashot Ashkelon Industries that investors should think about before committing capital to this stock.

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.