Tamar Galili has been the CEO of Ilex Medical Ltd (TLV:ILX) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for Ilex Medical
How Does Total Compensation For Tamar Galili Compare With Other Companies In The Industry?
According to our data, Ilex Medical Ltd has a market capitalization of ₪1.2b, and paid its CEO total annual compensation worth ₪1.8m over the year to December 2019. We note that's an increase of 62% above last year. We note that the salary portion, which stands at ₪1.34m constitutes the majority of total compensation received by the CEO.
On comparing similar companies from the same industry with market caps ranging from ₪665m to ₪2.7b, we found that the median CEO total compensation was ₪938k. Hence, we can conclude that Tamar Galili is remunerated higher than the industry median. Furthermore, Tamar Galili directly owns ₪17m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2019 | 2017 | Proportion (2019) |
| Salary | ₪1.3m | ₪866k | 76% |
| Other | ₪429k | ₪226k | 24% |
| Total Compensation | ₪1.8m | ₪1.1m | 100% |
Speaking on an industry level, nearly 92% of total compensation represents salary, while the remainder of 7.9% is other remuneration. In Ilex Medical's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Ilex Medical Ltd's Growth Numbers
Over the past three years, Ilex Medical Ltd has seen its earnings per share (EPS) grow by 26% per year. In the last year, its revenue is up 11%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Ilex Medical Ltd Been A Good Investment?
We think that the total shareholder return of 161%, over three years, would leave most Ilex Medical Ltd shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
As previously discussed, Tamar is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But EPS growth and shareholder returns have been top-notch for the past three years. As a result of the excellent all-round performance of the company, we believe CEO compensation is fair. And given most shareholders are probably very happy with recent returns, they might even think that Tamar deserves a raise!
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Ilex Medical 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. 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.
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About TASE:ILX
Ilex Medical
Provides healthcare technological solutions in Israel, South Africa, and internationally.
Flawless balance sheet second-rate dividend payer.
