Increases to Holmes Place International Ltd's (TLV:HLMS) CEO Compensation Might Cool off for now

Key Insights

• Holmes Place International will host its Annual General Meeting on 21st of August
• CEO Gabi Shatoi's total compensation includes salary of ₪1.37m
• The overall pay is 1,091% above the industry average
• Holmes Place International's EPS grew by 108% over the past three years while total shareholder return over the past three years was 41%

CEO Gabi Shatoi has done a decent job of delivering relatively good performance at Holmes Place International Ltd (TLV:HLMS) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 21st of August. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Holmes Place International

Comparing Holmes Place International Ltd's CEO Compensation With The Industry

Our data indicates that Holmes Place International Ltd has a market capitalization of ₪421m, and total annual CEO compensation was reported as ₪4.2m for the year to December 2023. Notably, that's an increase of 14% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at ₪1.4m.

On comparing similar-sized companies in the Israel Hospitality industry with market capitalizations below ₪741m, we found that the median total CEO compensation was ₪349k. Hence, we can conclude that Gabi Shatoi is remunerated higher than the industry median.

Component	2023	2022	Proportion (2023)
Salary	₪1.4m	₪1.5m	33%
Other	₪2.8m	₪2.2m	67%
Total Compensation	₪4.2m	₪3.7m	100%

Talking in terms of the industry, salary represented approximately 47% of total compensation out of all the companies we analyzed, while other remuneration made up 53% of the pie. It's interesting to note that Holmes Place International allocates a smaller portion of compensation to salary in comparison to the broader 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 Holmes Place International Ltd's Growth Numbers

Holmes Place International Ltd has seen its earnings per share (EPS) increase by 108% a year over the past three years. In the last year, its revenue is up 7.1%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Holmes Place International Ltd Been A Good Investment?

We think that the total shareholder return of 41%, over three years, would leave most Holmes Place International Ltd shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar 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, 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 1 warning sign for Holmes Place International that you should be aware of before investing.

Important note: Holmes Place International is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.