Inrom Construction Industries Ltd's (TLV:INRM) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Inrom Construction Industries to hold its Annual General Meeting on 10th of December
• Total pay for CEO Noam Shchalca includes ₪1.48m salary
• Total compensation is 773% above industry average
• Inrom Construction Industries' EPS declined by 0.4% over the past three years while total shareholder return over the past three years was 81%

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Under the guidance of CEO Noam Shchalca, Inrom Construction Industries Ltd (TLV:INRM) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 10th of December. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Inrom Construction Industries

Comparing Inrom Construction Industries Ltd's CEO Compensation With The Industry

At the time of writing, our data shows that Inrom Construction Industries Ltd has a market capitalization of ₪3.6b, and reported total annual CEO compensation of ₪3.9m for the year to December 2024. That's a notable increase of 22% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₪1.5m.

On examining similar-sized companies in the Israel Building industry with market capitalizations between ₪1.3b and ₪5.2b, we discovered that the median CEO total compensation of that group was ₪444k. Hence, we can conclude that Noam Shchalca is remunerated higher than the industry median.

Talking in terms of the industry, salary represented approximately 91% of total compensation out of all the companies we analyzed, while other remuneration made up 9% of the pie. Inrom Construction Industries pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Inrom Construction Industries Ltd's Growth Numbers

Over the last three years, Inrom Construction Industries Ltd has not seen its earnings per share change much, though they have deteriorated slightly. In the last year, its revenue is up 43%.

Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Inrom Construction Industries Ltd Been A Good Investment?

Boasting a total shareholder return of 81% over three years, Inrom Construction Industries Ltd has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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.

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. That's why we did some digging and identified 3 warning signs for Inrom Construction Industries that investors should think about before committing capital to this stock.

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.