Shareholders Will Probably Hold Off On Increasing BrainsWay Ltd.'s (TLV:BWAY) CEO Compensation For The Time Being

Key Insights

• BrainsWay will host its Annual General Meeting on 11th of September
• Salary of US$276.4k is part of CEO Hadar Levy's total remuneration
• The overall pay is 426% above the industry average
• BrainsWay's total shareholder return over the past three years was 284% while its EPS grew by 91% over the past three years

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CEO Hadar Levy has done a decent job of delivering relatively good performance at BrainsWay Ltd. (TLV:BWAY) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 11th of September. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for BrainsWay

How Does Total Compensation For Hadar Levy Compare With Other Companies In The Industry?

At the time of writing, our data shows that BrainsWay Ltd. has a market capitalization of ₪992m, and reported total annual CEO compensation of US$804k for the year to December 2024. Notably, that's an increase of 33% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$276k.

On examining similar-sized companies in the Israel Medical Equipment industry with market capitalizations between ₪335m and ₪1.3b, we discovered that the median CEO total compensation of that group was US$153k. This suggests that Hadar Levy is paid more than the median for the industry. What's more, Hadar Levy holds ₪1.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	US$276k	US$335k	34%
Other	US$528k	US$271k	66%
Total Compensation	US$804k	US$606k	100%

On an industry level, roughly 71% of total compensation represents salary and 29% is other remuneration. It's interesting to note that BrainsWay allocates a smaller portion of compensation to salary 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.

BrainsWay Ltd.'s Growth

Over the past three years, BrainsWay Ltd. has seen its earnings per share (EPS) grow by 91% per year. In the last year, its revenue is up 26%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 BrainsWay Ltd. Been A Good Investment?

Most shareholders would probably be pleased with BrainsWay Ltd. for providing a total return of 284% over three years. 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.

In Summary...

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. 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 is one thing, but it is also interesting to check if the CEO is buying or selling BrainsWay (free visualization of insider trades).

Important note: BrainsWay 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.