Here's Why We Think Identi Healthcare Ltd's (TLV:IDNT) CEO Compensation Looks Fair

Key Insights

• Identi Healthcare will host its Annual General Meeting on 18th of September
• Salary of ₪683.0k is part of CEO Shlomo Matityaho's total remuneration
• The total compensation is 44% less than the average for the industry
• Identi Healthcare's EPS grew by 6.6% over the past three years while total shareholder loss over the past three years was 46%

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Performance at Identi Healthcare Ltd (TLV:IDNT) has been rather uninspiring recently and shareholders may be wondering how CEO Shlomo Matityaho plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 18th of September. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

View our latest analysis for Identi Healthcare

Comparing Identi Healthcare Ltd's CEO Compensation With The Industry

Our data indicates that Identi Healthcare Ltd has a market capitalization of ₪37m, and total annual CEO compensation was reported as ₪683k for the year to December 2024. That's mostly flat as compared to the prior year's compensation. Notably, the salary of ₪683k is the entirety of the CEO compensation.

In comparison with other companies in the Israel Medical Equipment industry with market capitalizations under ₪666m, the reported median total CEO compensation was ₪1.2m. Accordingly, Identi Healthcare pays its CEO under the industry median. Moreover, Shlomo Matityaho also holds ₪22m worth of Identi Healthcare stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 77% of total compensation out of all the companies we analyzed, while other remuneration made up 23% of the pie. At the company level, Identi Healthcare pays Shlomo Matityaho solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Identi Healthcare Ltd's Growth Numbers

Identi Healthcare Ltd's earnings per share (EPS) grew 6.6% per year over the last three years. In the last year, its revenue is up 9.5%.

We're not particularly impressed by the revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Identi Healthcare Ltd Been A Good Investment?

The return of -46% over three years would not have pleased Identi Healthcare Ltd shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Identi Healthcare pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The fact that shareholders have earned a negative share price return is certainly disconcerting. The disappointing performance may have something to do with the flat earnings growth. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 5 warning signs (and 2 which are a bit concerning) in Identi Healthcare we think you should know about.

Important note: Identi Healthcare 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.