We Think Shareholders Are Less Likely To Approve A Large Pay Rise For NewMed Energy - Limited Partnership's (TLV:NWMD) CEO For Now

Key Insights

• NewMed Energy - Limited Partnership's Annual General Meeting to take place on 6th of August
• Total pay for CEO Joseph Abu includes US$861.9k salary
• The overall pay is 2,732% above the industry average
• NewMed Energy - Limited Partnership's total shareholder return over the past three years was 143% while its EPS grew by 24% over the past three years

CEO Joseph Abu has done a decent job of delivering relatively good performance at NewMed Energy - Limited Partnership (TLV:NWMD) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 6th of August. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for NewMed Energy - Limited Partnership

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

According to our data, NewMed Energy - Limited Partnership has a market capitalization of ₪11b, and paid its CEO total annual compensation worth US$4.6m over the year to December 2023. We note that's an increase of 63% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$862k.

On comparing similar companies from the Israel Oil and Gas industry with market caps ranging from ₪7.5b to ₪24b, we found that the median CEO total compensation was US$163k. This suggests that Joseph Abu is paid more than the median for the industry. Moreover, Joseph Abu also holds ₪5.4m worth of NewMed Energy - Limited Partnership stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$862k	US$839k	19%
Other	US$3.8m	US$2.0m	81%
Total Compensation	US$4.6m	US$2.8m	100%

Speaking on an industry level, nearly 46% of total compensation represents salary, while the remainder of 54% is other remuneration. 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.

NewMed Energy - Limited Partnership's Growth

NewMed Energy - Limited Partnership has seen its earnings per share (EPS) increase by 24% a year over the past three years. In the last year, its revenue is down 8.0%.

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. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has NewMed Energy - Limited Partnership Been A Good Investment?

Boasting a total shareholder return of 143% over three years, NewMed Energy - Limited Partnership has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for NewMed Energy - Limited Partnership that investors should be aware of in a dynamic business environment.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com