Neto Malinda Trading Ltd.'s (TLV:NTML) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Neto Malinda Trading will host its Annual General Meeting on 7th of July
• CEO Oren Avni's total compensation includes salary of ₪995.0k
• The total compensation is 127% higher than the average for the industry
• Neto Malinda Trading's total shareholder return over the past three years was 7.0% while its EPS grew by 6.4% over the past three years

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CEO Oren Avni has done a decent job of delivering relatively good performance at Neto Malinda Trading Ltd. (TLV:NTML) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 7th of July. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Neto Malinda Trading

Comparing Neto Malinda Trading Ltd.'s CEO Compensation With The Industry

Our data indicates that Neto Malinda Trading Ltd. has a market capitalization of ₪2.7b, and total annual CEO compensation was reported as ₪1.1m for the year to December 2024. That's just a smallish increase of 4.0% on last year. Notably, the salary which is ₪995.0k, represents most of the total compensation being paid.

For comparison, other companies in the Israel Food industry with market capitalizations ranging between ₪1.3b and ₪5.4b had a median total CEO compensation of ₪480k. This suggests that Oren Avni is paid more than the median for the industry.

On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration. Although there is a difference in how total compensation is set, Neto Malinda Trading more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Neto Malinda Trading Ltd.'s Growth Numbers

Over the past three years, Neto Malinda Trading Ltd. has seen its earnings per share (EPS) grow by 6.4% per year. In the last year, its revenue is up 13%.

We think the revenue growth is good. And the modest growth in EPS isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Neto Malinda Trading Ltd. Been A Good Investment?

Neto Malinda Trading Ltd. has not done too badly by shareholders, with a total return of 7.0%, over three years. It would be nice to see that metric improve in the future. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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.

Shareholders may want to check for free if Neto Malinda Trading insiders are buying or selling shares.

Important note: Neto Malinda Trading 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.