Navitas Petroleum, Limited Partnership's (TLV:NVPT) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• Navitas Petroleum Limited Partnership will host its Annual General Meeting on 6th of October
• Salary of US$426.0k is part of CEO Amit Kornhauser's total remuneration
• Total compensation is similar to the industry average
• Navitas Petroleum Limited Partnership's EPS grew by 18% over the past three years while total shareholder return over the past three years was 235%

We have been pretty impressed with the performance at Navitas Petroleum, Limited Partnership (TLV:NVPT) recently and CEO Amit Kornhauser deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 6th of October. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

See our latest analysis for Navitas Petroleum Limited Partnership

How Does Total Compensation For Amit Kornhauser Compare With Other Companies In The Industry?

According to our data, Navitas Petroleum, Limited Partnership has a market capitalization of ₪5.3b, and paid its CEO total annual compensation worth US$1.2m over the year to December 2023. That's slightly lower by 5.7% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$426k.

For comparison, other companies in the Israel Oil and Gas industry with market capitalizations ranging between ₪3.7b and ₪12b had a median total CEO compensation of US$1.4m. From this we gather that Amit Kornhauser is paid around the median for CEOs in the industry. Furthermore, Amit Kornhauser directly owns ₪42m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$426k	US$426k	34%
Other	US$823k	US$899k	66%
Total Compensation	US$1.2m	US$1.3m	100%

On an industry level, roughly 46% of total compensation represents salary and 54% is other remuneration. It's interesting to note that Navitas Petroleum Limited Partnership allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Navitas Petroleum, Limited Partnership's Growth

Over the past three years, Navitas Petroleum, Limited Partnership has seen its earnings per share (EPS) grow by 18% per year. Its revenue is up 4.1% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Navitas Petroleum, Limited Partnership Been A Good Investment?

We think that the total shareholder return of 235%, over three years, would leave most Navitas Petroleum, Limited Partnership shareholders smiling. 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...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 4 warning signs (and 2 which make us uncomfortable) in Navitas Petroleum Limited Partnership we think you should know about.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.