Clal Insurance Enterprises Holdings Ltd.'s (TLV:CLIS) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Clal Insurance Enterprises Holdings to hold its Annual General Meeting on 6th of November
• Total pay for CEO Yoram Naveh includes ₪3.31m salary
• The overall pay is 55% above the industry average
• Clal Insurance Enterprises Holdings' EPS grew by 6.9% over the past three years while total shareholder return over the past three years was 219%

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CEO Yoram Naveh has done a decent job of delivering relatively good performance at Clal Insurance Enterprises Holdings Ltd. (TLV:CLIS) recently. As shareholders go into the upcoming AGM on 6th of November, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Clal Insurance Enterprises Holdings

How Does Total Compensation For Yoram Naveh Compare With Other Companies In The Industry?

According to our data, Clal Insurance Enterprises Holdings Ltd. has a market capitalization of ₪15b, and paid its CEO total annual compensation worth ₪3.3m over the year to December 2024. That's mostly flat as compared to the prior year's compensation. It is worth noting that the CEO compensation consists entirely of the salary, worth ₪3.3m.

On comparing similar companies from the Israel Insurance industry with market caps ranging from ₪6.5b to ₪21b, we found that the median CEO total compensation was ₪2.1m. Accordingly, our analysis reveals that Clal Insurance Enterprises Holdings Ltd. pays Yoram Naveh north of the industry median.

Talking in terms of the industry, salary represented approximately 86% of total compensation out of all the companies we analyzed, while other remuneration made up 14% of the pie. Speaking on a company level, Clal Insurance Enterprises Holdings prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Clal Insurance Enterprises Holdings Ltd.'s Growth

Clal Insurance Enterprises Holdings Ltd. has seen its earnings per share (EPS) increase by 6.9% a year over the past three years. Its revenue is up 54% over the last year.

It's great to see that revenue growth is strong. With that in mind, the modestly improving EPS seems positive. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Clal Insurance Enterprises Holdings Ltd. Been A Good Investment?

Most shareholders would probably be pleased with Clal Insurance Enterprises Holdings Ltd. for providing a total return of 219% 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...

Clal Insurance Enterprises Holdings pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Clal Insurance Enterprises Holdings that investors should think about before committing capital to this stock.

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.