Shareholders May Be More Conservative With Polyram Plastic Industries LTD's (TLV:POLP) CEO Compensation For Now

Key Insights

• Polyram Plastic Industries to hold its Annual General Meeting on 14th of December
• Salary of ₪1.18m is part of CEO Yuval Peleg's total remuneration
• The total compensation is 119% higher than the average for the industry
• Polyram Plastic Industries' EPS grew by 11% over the past three years while total shareholder return over the past three years was 26%

Under the guidance of CEO Yuval Peleg, Polyram Plastic Industries LTD (TLV:POLP) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 14th of December. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Polyram Plastic Industries

How Does Total Compensation For Yuval Peleg Compare With Other Companies In The Industry?

Our data indicates that Polyram Plastic Industries LTD has a market capitalization of ₪1.0b, and total annual CEO compensation was reported as ₪2.1m for the year to December 2022. We note that's a small decrease of 4.3% on last year. We note that the salary of ₪1.18m makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the Israel Chemicals industry with market capitalizations ranging from ₪370m to ₪1.5b, the reported median CEO total compensation was ₪949k. Accordingly, our analysis reveals that Polyram Plastic Industries LTD pays Yuval Peleg north of the industry median.

Component	2022	2021	Proportion (2022)
Salary	₪1.2m	₪1.2m	57%
Other	₪899k	₪1.0m	43%
Total Compensation	₪2.1m	₪2.2m	100%

On an industry level, roughly 62% of total compensation represents salary and 38% is other remuneration. Although there is a difference in how total compensation is set, Polyram Plastic Industries more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Polyram Plastic Industries LTD's Growth

Polyram Plastic Industries LTD's earnings per share (EPS) grew 11% per year over the last three years. In the last year, its revenue is down 7.9%.

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. 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 Polyram Plastic Industries LTD Been A Good Investment?

Polyram Plastic Industries LTD has served shareholders reasonably well, with a total return of 26% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Polyram Plastic Industries that investors should look into moving forward.

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.