Here's Why We Think Gamla Harel Residential Real Estate Ltd's (TLV:GMLA) CEO Compensation Looks Fair for the time being

Key Insights

• Gamla Harel Residential Real Estate to hold its Annual General Meeting on 18th of September
• CEO Tal Tapuchi's total compensation includes salary of ₪1.14m
• The overall pay is comparable to the industry average
• Gamla Harel Residential Real Estate's total shareholder return over the past three years was 43% while its EPS grew by 3.1% over the past three years

CEO Tal Tapuchi has done a decent job of delivering relatively good performance at Gamla Harel Residential Real Estate Ltd (TLV:GMLA) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 18th of September. Here is our take on why we think the CEO compensation looks appropriate.

Check out our latest analysis for Gamla Harel Residential Real Estate

How Does Total Compensation For Tal Tapuchi Compare With Other Companies In The Industry?

Our data indicates that Gamla Harel Residential Real Estate Ltd has a market capitalization of ₪506m, and total annual CEO compensation was reported as ₪3.0m for the year to December 2023. Notably, that's an increase of 9.7% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₪1.1m.

In comparison with other companies in the Israel Diversified Financial industry with market capitalizations under ₪752m, the reported median total CEO compensation was ₪2.6m. From this we gather that Tal Tapuchi is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	₪1.1m	₪1.1m	39%
Other	₪1.8m	₪1.6m	61%
Total Compensation	₪3.0m	₪2.7m	100%

On an industry level, around 39% of total compensation represents salary and 61% is other remuneration. There isn't a significant difference between Gamla Harel Residential Real Estate and the broader market, in terms of salary allocation in the overall compensation package. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Gamla Harel Residential Real Estate Ltd's Growth

Gamla Harel Residential Real Estate Ltd's earnings per share (EPS) grew 3.1% per year over the last three years. Its revenue is up 6.0% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 Gamla Harel Residential Real Estate Ltd Been A Good Investment?

Boasting a total shareholder return of 43% over three years, Gamla Harel Residential Real Estate Ltd has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same 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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Gamla Harel Residential Real Estate 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.