Shareholders May Not Be So Generous With NewMed Energy - Limited Partnership's (TLV:NWMD) CEO Compensation And Here's Why

Key Insights

• NewMed Energy - Limited Partnership to hold its Annual General Meeting on 4th of November
• Salary of US$914.5k is part of CEO Joseph Abu's total remuneration
• The overall pay is 713% above the industry average
• NewMed Energy - Limited Partnership's EPS grew by 50% over the past three years while total shareholder return over the past three years was 142%

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Under the guidance of CEO Joseph Abu, NewMed Energy - Limited Partnership (TLV:NWMD) has performed reasonably well recently. As shareholders go into the upcoming AGM on 4th of November, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for NewMed Energy - Limited Partnership

Comparing NewMed Energy - Limited Partnership's CEO Compensation With The Industry

At the time of writing, our data shows that NewMed Energy - Limited Partnership has a market capitalization of ₪19b, and reported total annual CEO compensation of US$2.4m for the year to December 2024. That's a notable decrease of 48% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$914k.

On examining similar-sized companies in the Israel Oil and Gas industry with market capitalizations between ₪13b and ₪39b, we discovered that the median CEO total compensation of that group was US$297k. This suggests that Joseph Abu is paid more than the median for the industry. What's more, Joseph Abu holds ₪9.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 56% of total compensation out of all the companies we analyzed, while other remuneration made up 44% of the pie. It's interesting to note that NewMed Energy - 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.

A Look at NewMed Energy - Limited Partnership's Growth Numbers

Over the past three years, NewMed Energy - Limited Partnership has seen its earnings per share (EPS) grow by 50% per year. Its revenue is down 5.7% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has NewMed Energy - Limited Partnership Been A Good Investment?

We think that the total shareholder return of 142%, over three years, would leave most NewMed Energy - Limited Partnership shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar 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. 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. We did our research and spotted 2 warning signs for NewMed Energy - Limited Partnership that investors should look into moving forward.

Important note: NewMed Energy - Limited Partnership 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.