Shareholders Will Probably Hold Off On Increasing ICL Group Ltd's (TLV:ICL) CEO Compensation For The Time Being

Key Insights

• ICL Group to hold its Annual General Meeting on 17th of July
• Total pay for CEO Raviv Zoller includes US$1.16m salary
• The total compensation is 671% higher than the average for the industry
• Over the past three years, ICL Group's EPS grew by 76% and over the past three years, the total loss to shareholders 15%

In the past three years, shareholders of ICL Group Ltd (TLV:ICL) have seen a loss on their investment. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 17th of July. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for ICL Group

How Does Total Compensation For Raviv Zoller Compare With Other Companies In The Industry?

At the time of writing, our data shows that ICL Group Ltd has a market capitalization of ₪21b, and reported total annual CEO compensation of US$3.7m for the year to December 2023. That's a notable decrease of 23% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.2m.

For comparison, other companies in the Israel Chemicals industry with market capitalizations ranging between ₪15b and ₪44b had a median total CEO compensation of US$477k. This suggests that Raviv Zoller is paid more than the median for the industry. What's more, Raviv Zoller holds ₪16m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$1.2m	US$1.1m	31%
Other	US$2.5m	US$3.7m	69%
Total Compensation	US$3.7m	US$4.8m	100%

Speaking on an industry level, nearly 78% of total compensation represents salary, while the remainder of 22% is other remuneration. ICL Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at ICL Group Ltd's Growth Numbers

ICL Group Ltd has seen its earnings per share (EPS) increase by 76% a year over the past three years. It saw its revenue drop 26% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has ICL Group Ltd Been A Good Investment?

Since shareholders would have lost about 15% over three years, some ICL Group Ltd investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for ICL Group 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.

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