It's Unlikely That Shareholders Will Increase Sano Bruno's Enterprises Ltd's (TLV:SANO1) Compensation By Much This Year

Key Insights

• Sano Bruno's Enterprises' Annual General Meeting to take place on 24th of July
• CEO Yuval Landesberg's total compensation includes salary of ₪1.48m
• The total compensation is similar to the average for the industry
• Sano Bruno's Enterprises' EPS grew by 2.4% over the past three years while total shareholder return over the past three years was 2.6%

Under the guidance of CEO Yuval Landesberg, Sano Bruno's Enterprises Ltd (TLV:SANO1) has performed reasonably well recently. As shareholders go into the upcoming AGM on 24th of July, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.

View our latest analysis for Sano Bruno's Enterprises

How Does Total Compensation For Yuval Landesberg Compare With Other Companies In The Industry?

Our data indicates that Sano Bruno's Enterprises Ltd has a market capitalization of ₪3.4b, and total annual CEO compensation was reported as ₪2.3m for the year to December 2023. We note that's a small decrease of 4.3% on last year. In particular, the salary of ₪1.48m, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Israel Household Products industry with market capitalizations between ₪1.5b and ₪5.8b, we discovered that the median CEO total compensation of that group was ₪2.7m. This suggests that Sano Bruno's Enterprises remunerates its CEO largely in line with the industry average.

Component	2023	2022	Proportion (2023)
Salary	₪1.5m	₪1.5m	64%
Other	₪841k	₪960k	36%
Total Compensation	₪2.3m	₪2.4m	100%

On an industry level, around 94% of total compensation represents salary and 6% is other remuneration. Sano Bruno's Enterprises sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Sano Bruno's Enterprises Ltd's Growth

Sano Bruno's Enterprises Ltd has seen its earnings per share (EPS) increase by 2.4% a year over the past three years. Its revenue is up 11% over the last year.

We would argue that the modest growth in revenue is a notable positive. And the modest growth in EPS isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Sano Bruno's Enterprises Ltd Been A Good Investment?

Sano Bruno's Enterprises Ltd has generated a total shareholder return of 2.6% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

Shareholders may want to check for free if Sano Bruno's Enterprises insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com