Blender Financial Technologies' (TLV:BLND) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Blender Financial Technologies will host its Annual General Meeting on 30th of December
• Salary of ₪1.40m is part of CEO Gal Aviv's total remuneration
• The overall pay is 605% above the industry average
• Blender Financial Technologies' EPS grew by 37% over the past three years while total shareholder loss over the past three years was 86%

In the past three years, the share price of Blender Financial Technologies (TLV:BLND) has struggled to grow and now shareholders are sitting on a loss. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 30th of December could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Blender Financial Technologies

Comparing Blender Financial Technologies' CEO Compensation With The Industry

At the time of writing, our data shows that Blender Financial Technologies has a market capitalization of ₪34m, and reported total annual CEO compensation of ₪1.4m for the year to December 2023. Notably, that's a decrease of 13% over the year before. We note that the salary portion, which stands at ₪1.40m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Israel Consumer Finance industry with market capitalizations below ₪735m, we found that the median total CEO compensation was ₪201k. Accordingly, our analysis reveals that Blender Financial Technologies pays Gal Aviv north of the industry median.

Component	2023	2022	Proportion (2023)
Salary	₪1.4m	₪1.6m	98%
Other	₪22k	₪66k	2%
Total Compensation	₪1.4m	₪1.6m	100%

On an industry level, roughly 78% of total compensation represents salary and 22% is other remuneration. Blender Financial Technologies is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Blender Financial Technologies' Growth

Over the past three years, Blender Financial Technologies has seen its earnings per share (EPS) grow by 37% per year. Its revenue is down 20% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Blender Financial Technologies Been A Good Investment?

The return of -86% over three years would not have pleased Blender Financial Technologies shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Blender Financial Technologies pays its CEO a majority of compensation through a salary. Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line 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 3 warning signs for Blender Financial Technologies that investors should think about before committing capital to this stock.

Switching gears from Blender Financial Technologies, 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.