Ginegar Plastic Products Ltd.'s (TLV:GNGR) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Ginegar Plastic Products to hold its Annual General Meeting on 20th of August
• Total pay for CEO Fabio Kahn includes ₪1.20m salary
• The overall pay is comparable to the industry average
• Ginegar Plastic Products' EPS declined by 41% over the past three years while total shareholder loss over the past three years was 49%

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The results at Ginegar Plastic Products Ltd. (TLV:GNGR) have been quite disappointing recently and CEO Fabio Kahn bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 20th of August. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for Ginegar Plastic Products

How Does Total Compensation For Fabio Kahn Compare With Other Companies In The Industry?

Our data indicates that Ginegar Plastic Products Ltd. has a market capitalization of ₪129m, and total annual CEO compensation was reported as ₪1.8m for the year to December 2024. Notably, that's an increase of 8.0% over the year before. In particular, the salary of ₪1.20m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Israel Chemicals industry with market capitalizations below ₪677m, reported a median total CEO compensation of ₪1.5m. From this we gather that Fabio Kahn is paid around the median for CEOs in the industry.

Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. Ginegar Plastic Products is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Ginegar Plastic Products Ltd.'s Growth

Over the last three years, Ginegar Plastic Products Ltd. has shrunk its earnings per share by 41% per year. In the last year, its revenue is up 2.6%.

Few shareholders would be pleased to read that EPS have declined. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Ginegar Plastic Products Ltd. Been A Good Investment?

The return of -49% over three years would not have pleased Ginegar Plastic Products Ltd. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 5 warning signs (and 3 which are potentially serious) in Ginegar Plastic Products we think you should know about.

Switching gears from Ginegar Plastic Products, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.