It Looks Like Hamat Group Ltd.'s (TLV:HAMAT) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Hamat Group will host its Annual General Meeting on 6th of August
• Total pay for CEO Nir Klein includes ₪911.0k salary
• The total compensation is 286% higher than the average for the industry
• Over the past three years, Hamat Group's EPS fell by 22% and over the past three years, the total loss to shareholders 46%

Hamat Group Ltd. (TLV:HAMAT) has not performed well recently and CEO Nir Klein will probably need to up their game. At the upcoming AGM on 6th of August, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for Hamat Group

How Does Total Compensation For Nir Klein Compare With Other Companies In The Industry?

According to our data, Hamat Group Ltd. has a market capitalization of ₪371m, and paid its CEO total annual compensation worth ₪1.1m over the year to December 2023. That's a notable decrease of 30% on last year. Notably, the salary which is ₪911.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Israel Building industry with market capitalizations below ₪748m, we found that the median total CEO compensation was ₪275k. Accordingly, our analysis reveals that Hamat Group Ltd. pays Nir Klein north of the industry median.

Component	2023	2022	Proportion (2023)
Salary	₪911k	₪911k	86%
Other	₪152k	₪612k	14%
Total Compensation	₪1.1m	₪1.5m	100%

Speaking on an industry level, nearly 79% of total compensation represents salary, while the remainder of 21% is other remuneration. Our data reveals that Hamat Group allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Hamat Group Ltd.'s Growth

Over the last three years, Hamat Group Ltd. has shrunk its earnings per share by 22% per year. In the last year, its revenue is down 18%.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Hamat Group Ltd. Been A Good Investment?

Few Hamat Group Ltd. shareholders would feel satisfied with the return of -46% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 5 warning signs (and 1 which is significant) in Hamat Group we think you should know about.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com