I.D.I. Insurance Company Ltd.'s (TLV:IDIN) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• I.D.I. Insurance's Annual General Meeting to take place on 4th of July
• CEO Koby Haber's total compensation includes salary of ₪3.71m
• Total compensation is 684% above industry average
• Over the past three years, I.D.I. Insurance's EPS fell by 10% and over the past three years, the total shareholder return was 9.8%

CEO Koby Haber has done a decent job of delivering relatively good performance at I.D.I. Insurance Company Ltd. (TLV:IDIN) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 4th of July. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for I.D.I. Insurance

Comparing I.D.I. Insurance Company Ltd.'s CEO Compensation With The Industry

Our data indicates that I.D.I. Insurance Company Ltd. has a market capitalization of ₪1.5b, and total annual CEO compensation was reported as ₪3.9m for the year to December 2023. That's slightly lower by 4.1% over the previous year. We note that the salary portion, which stands at ₪3.71m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Israel Insurance industry with market caps ranging from ₪751m to ₪3.0b, we found that the median CEO total compensation was ₪501k. Hence, we can conclude that Koby Haber is remunerated higher than the industry median.

Component	2023	2022	Proportion (2023)
Salary	₪3.7m	₪3.6m	95%
Other	₪211k	₪530k	5%
Total Compensation	₪3.9m	₪4.1m	100%

On an industry level, roughly 78% of total compensation represents salary and 22% is other remuneration. I.D.I. Insurance is paying a higher share of its remuneration through a 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.

I.D.I. Insurance Company Ltd.'s Growth

Over the last three years, I.D.I. Insurance Company Ltd. has shrunk its earnings per share by 10% per year. It achieved revenue growth of 28% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 I.D.I. Insurance Company Ltd. Been A Good Investment?

With a total shareholder return of 9.8% over three years, I.D.I. Insurance Company Ltd. has done okay by shareholders, but there's always room for improvement. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

The overall company performance has been commendable, however there are still areas for improvement. We still think that some shareholders will be hesitant of increasing CEO pay until EPS growth improves, since they are already paid higher than the industry.

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. In our study, we found 2 warning signs for I.D.I. Insurance you should be aware of, and 1 of them is significant.

Important note: I.D.I. Insurance 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.

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