Most Shareholders Will Probably Agree With The Phoenix Holdings Ltd.'s (TLV:PHOE) CEO Compensation

Key Insights

• Phoenix Holdings to hold its Annual General Meeting on 14th of August
• CEO Eyal Simon's total compensation includes salary of ₪2.52m
• Total compensation is similar to the industry average
• Phoenix Holdings' EPS declined by 13% over the past three years while total shareholder return over the past three years was 29%

CEO Eyal Simon has done a decent job of delivering relatively good performance at The Phoenix Holdings Ltd. (TLV:PHOE) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 14th of August. We present our case of why we think CEO compensation looks fair.

See our latest analysis for Phoenix Holdings

How Does Total Compensation For Eyal Simon Compare With Other Companies In The Industry?

Our data indicates that The Phoenix Holdings Ltd. has a market capitalization of ₪8.9b, and total annual CEO compensation was reported as ₪4.0m for the year to December 2023. That's a fairly small increase of 6.7% over the previous year. Notably, the salary which is ₪2.52m, represents most of the total compensation being paid.

On comparing similar companies from the Israel Insurance industry with market caps ranging from ₪3.8b to ₪12b, we found that the median CEO total compensation was ₪3.5m. From this we gather that Eyal Simon is paid around the median for CEOs in the industry. What's more, Eyal Simon holds ₪2.0m worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	₪2.5m	₪2.4m	63%
Other	₪1.5m	₪1.3m	37%
Total Compensation	₪4.0m	₪3.7m	100%

Speaking on an industry level, nearly 86% of total compensation represents salary, while the remainder of 14% is other remuneration. It's interesting to note that Phoenix Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at The Phoenix Holdings Ltd.'s Growth Numbers

Over the last three years, The Phoenix Holdings Ltd. has shrunk its earnings per share by 13% per year. It achieved revenue growth of 204% over the last year.

Investors would be a bit wary of companies that have lower EPS 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has The Phoenix Holdings Ltd. Been A Good Investment?

The Phoenix Holdings Ltd. has served shareholders reasonably well, with a total return of 29% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

Although the company has performed relatively well, we still think there are some areas that could be improved. Still, we think that until shareholders see an improvement in EPS growth, they may find it hard to justify a pay rise for the CEO.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Phoenix Holdings 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. 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