We Think Some Shareholders May Hesitate To Increase Danya Cebus Ltd.'s (TLV:DNYA) CEO Compensation

Key Insights

• Danya Cebus to hold its Annual General Meeting on 7th of April
• CEO Ronen Ginsburg's total compensation includes salary of ₪2.31m
• Total compensation is 781% above industry average
• Danya Cebus' total shareholder return over the past three years was 27% while its EPS grew by 9.1% over the past three years

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CEO Ronen Ginsburg has done a decent job of delivering relatively good performance at Danya Cebus Ltd. (TLV:DNYA) recently. As shareholders go into the upcoming AGM on 7th of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Danya Cebus

Comparing Danya Cebus Ltd.'s CEO Compensation With The Industry

At the time of writing, our data shows that Danya Cebus Ltd. has a market capitalization of ₪3.2b, and reported total annual CEO compensation of ₪6.1m for the year to December 2024. Notably, that's a decrease of 16% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at ₪2.3m.

On examining similar-sized companies in the Israel Consumer Durables industry with market capitalizations between ₪1.5b and ₪6.0b, we discovered that the median CEO total compensation of that group was ₪690k. Hence, we can conclude that Ronen Ginsburg is remunerated higher than the industry median.

Speaking on an industry level, nearly 84% of total compensation represents salary, while the remainder of 16% is other remuneration. Danya Cebus 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 Danya Cebus Ltd.'s Growth Numbers

Over the past three years, Danya Cebus Ltd. has seen its earnings per share (EPS) grow by 9.1% per year. In the last year, its revenue is up 11%.

We would argue that the modest growth in revenue is a notable positive. And the improvement in EPSis modest but respectable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Danya Cebus Ltd. Been A Good Investment?

Danya Cebus Ltd. has served shareholders reasonably well, with a total return of 27% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

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. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Danya Cebus that investors should be aware of in a dynamic business environment.

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.