We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Strauss Group Ltd.'s (TLV:STRS) CEO For Now

Key Insights

• Strauss Group to hold its Annual General Meeting on 9th of July
• Salary of ₪1.80m is part of CEO Shai Babad's total remuneration
• The total compensation is 772% higher than the average for the industry
• Strauss Group's total shareholder return over the past three years was 16% while its EPS grew by 16% over the past three years

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Under the guidance of CEO Shai Babad, Strauss Group Ltd. (TLV:STRS) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 9th of July. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Strauss Group

Comparing Strauss Group Ltd.'s CEO Compensation With The Industry

According to our data, Strauss Group Ltd. has a market capitalization of ₪11b, and paid its CEO total annual compensation worth ₪8.6m over the year to December 2024. That's just a smallish increase of 4.3% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₪1.8m.

For comparison, other companies in the Israel Food industry with market capitalizations ranging between ₪6.7b and ₪22b had a median total CEO compensation of ₪982k. This suggests that Shai Babad 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. In Strauss Group's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Strauss Group Ltd.'s Growth Numbers

Over the past three years, Strauss Group Ltd. has seen its earnings per share (EPS) grow by 16% per year. In the last year, its revenue is up 6.5%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Strauss Group Ltd. Been A Good Investment?

Strauss Group Ltd. has generated a total shareholder return of 16% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for Strauss Group 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.