Most Shareholders Will Probably Find That The Compensation For Scodix Ltd.'s (TLV:SCDX) CEO Is Reasonable

Key Insights

• Scodix's Annual General Meeting to take place on 15th of September
• Salary of US$92.1k is part of CEO Eli Grinberg's total remuneration
• The overall pay is 58% below the industry average
• Scodix's three-year loss to shareholders was 52% while its EPS grew by 101% over the past three years

Shareholders may be wondering what CEO Eli Grinberg plans to do to improve the less than great performance at Scodix Ltd. (TLV:SCDX) recently. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 15th of September. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We think CEO compensation looks appropriate given the data we have put together.

View our latest analysis for Scodix

How Does Total Compensation For Eli Grinberg Compare With Other Companies In The Industry?

According to our data, Scodix Ltd. has a market capitalization of ₪85m, and paid its CEO total annual compensation worth US$120k over the year to December 2023. We note that's a decrease of 41% compared to last year. We note that the salary portion, which stands at US$92.1k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Israel Machinery industry with market capitalizations below ₪746m, reported a median total CEO compensation of US$287k. This suggests that Eli Grinberg is paid below the industry median. What's more, Eli Grinberg holds ₪194k worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	US$92k	US$109k	77%
Other	US$28k	US$94k	23%
Total Compensation	US$120k	US$203k	100%

On an industry level, roughly 80% of total compensation represents salary and 20% is other remuneration. Our data reveals that Scodix allocates salary more or less in line with the wider market. 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.

Scodix Ltd.'s Growth

Over the past three years, Scodix Ltd. has seen its earnings per share (EPS) grow by 101% per year. It saw its revenue drop 20% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 Scodix Ltd. Been A Good Investment?

With a total shareholder return of -52% over three years, Scodix Ltd. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The loss to shareholders over the past three years is certainly concerning. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. A key question may be why the fundamentals have not yet been reflected into the share price. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Scodix that you should be aware of before investing.

Switching gears from Scodix, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.