Shareholders May Not Be So Generous With Shaniv Paper Industry Ltd's (TLV:SHAN) CEO Compensation And Here's Why

Key Insights

• Shaniv Paper Industry to hold its Annual General Meeting on 9th of December
• CEO Pesach Bernat's total compensation includes salary of ₪1.26m
• Total compensation is 1,064% above industry average
• Over the past three years, Shaniv Paper Industry's EPS grew by 7.4% and over the past three years, the total shareholder return was 57%

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CEO Pesach Bernat has done a decent job of delivering relatively good performance at Shaniv Paper Industry Ltd (TLV:SHAN) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 9th of December. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Shaniv Paper Industry

Comparing Shaniv Paper Industry Ltd's CEO Compensation With The Industry

According to our data, Shaniv Paper Industry Ltd has a market capitalization of ₪378m, and paid its CEO total annual compensation worth ₪3.1m over the year to December 2024. This was the same amount the CEO received in the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₪1.3m.

For comparison, other companies in the Israel Forestry industry with market capitalizations below ₪652m, reported a median total CEO compensation of ₪265k. Hence, we can conclude that Pesach Bernat is remunerated higher than the industry median. What's more, Pesach Bernat holds ₪18m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	₪1.3m	₪1.5m	41%
Other	₪1.8m	₪1.6m	59%
Total Compensation	₪3.1m	₪3.1m	100%

On an industry level, roughly 85% of total compensation represents salary and 15% is other remuneration. Shaniv Paper Industry sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Shaniv Paper Industry Ltd's Growth

Over the past three years, Shaniv Paper Industry Ltd has seen its earnings per share (EPS) grow by 7.4% per year. In the last year, its revenue is up 9.5%.

We're not particularly impressed by the revenue growth, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Shaniv Paper Industry Ltd Been A Good Investment?

We think that the total shareholder return of 57%, over three years, would leave most Shaniv Paper Industry Ltd shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Shaniv Paper Industry (2 are a bit concerning!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.