Increases to CEO Compensation Might Be Put On Hold For Now at Menora Mivtachim Holdings Ltd. (TLV:MMHD)

Key Insights

• Menora Mivtachim Holdings' Annual General Meeting to take place on 5th of October
• Total pay for CEO Ari Kalman includes ₪2.92m salary
• Total compensation is 76% above industry average
• Menora Mivtachim Holdings' total shareholder return over the past three years was 386% while its EPS grew by 49% over the past three years

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Performance at Menora Mivtachim Holdings Ltd. (TLV:MMHD) has been reasonably good and CEO Ari Kalman has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 5th of October, 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 be hesitant of being overly generous with CEO compensation.

View our latest analysis for Menora Mivtachim Holdings

How Does Total Compensation For Ari Kalman Compare With Other Companies In The Industry?

At the time of writing, our data shows that Menora Mivtachim Holdings Ltd. has a market capitalization of ₪18b, and reported total annual CEO compensation of ₪3.7m for the year to December 2024. That's a modest increase of 5.7% on the prior year. We note that the salary portion, which stands at ₪2.92m constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the Israel Insurance industry with market capitalizations between ₪13b and ₪40b, we discovered that the median CEO total compensation of that group was ₪2.1m. Accordingly, our analysis reveals that Menora Mivtachim Holdings Ltd. pays Ari Kalman north of the industry median. What's more, Ari Kalman holds ₪493m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 86% of total compensation represents salary and 14% is other remuneration. There isn't a significant difference between Menora Mivtachim Holdings and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Menora Mivtachim Holdings Ltd.'s Growth

Over the past three years, Menora Mivtachim Holdings Ltd. has seen its earnings per share (EPS) grow by 49% per year. Its revenue is up 43% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Menora Mivtachim Holdings Ltd. Been A Good Investment?

Boasting a total shareholder return of 386% over three years, Menora Mivtachim Holdings Ltd. has done well by shareholders. 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...

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. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Menora Mivtachim Holdings that you should be aware of before investing.

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. 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.