It's Unlikely That I.B.I.- Managing & Underwriting Ltd's (TLV:IBIU) CEO Will See A Huge Pay Rise This Year

Key Insights

• I.B.I.- Managing & Underwriting's Annual General Meeting to take place on 31st of August
• CEO Ofer Grinbaum's total compensation includes salary of ₪1.42m
• The overall pay is 338% above the industry average
• I.B.I.- Managing & Underwriting's total shareholder return over the past three years was 2.3% while its EPS was down 15% over the past three years

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Performance at I.B.I.- Managing & Underwriting Ltd (TLV:IBIU) has been reasonably good and CEO Ofer Grinbaum has done a decent job of steering the company in the right direction. 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 31st of August. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for I.B.I.- Managing & Underwriting

Comparing I.B.I.- Managing & Underwriting Ltd's CEO Compensation With The Industry

At the time of writing, our data shows that I.B.I.- Managing & Underwriting Ltd has a market capitalization of ₪320m, and reported total annual CEO compensation of ₪4.3m for the year to December 2024. We note that's an increase of 17% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₪1.4m.

For comparison, other companies in the Israel Capital Markets industry with market capitalizations below ₪674m, reported a median total CEO compensation of ₪987k. This suggests that Ofer Grinbaum is paid more than the median for the industry. Moreover, Ofer Grinbaum also holds ₪13m worth of I.B.I.- Managing & Underwriting stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	₪1.4m	₪1.4m	33%
Other	₪2.9m	₪2.3m	67%
Total Compensation	₪4.3m	₪3.7m	100%

Talking in terms of the industry, salary represented approximately 86% of total compensation out of all the companies we analyzed, while other remuneration made up 14% of the pie. In I.B.I.- Managing & Underwriting's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at I.B.I.- Managing & Underwriting Ltd's Growth Numbers

Over the last three years, I.B.I.- Managing & Underwriting Ltd has shrunk its earnings per share by 15% per year. In the last year, its revenue is up 92%.

The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has I.B.I.- Managing & Underwriting Ltd Been A Good Investment?

With a total shareholder return of 2.3% over three years, I.B.I.- Managing & Underwriting Ltd has done okay by shareholders, but there's always room for improvement. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

To Conclude...

Some shareholders will be pleased by the relatively good results, however, the results could still be improved. EPS growth is still weak, and until that picks up, shareholders may find it hard to approve a pay rise for the CEO, since they are already paid above the average in their industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 3 warning signs for I.B.I.- Managing & Underwriting (of which 2 are potentially serious!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from I.B.I.- Managing & Underwriting, 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.