Here's Why Shareholders May Want To Be Cautious With Increasing Kamada Ltd.'s (TLV:KMDA) CEO Pay Packet

Key Insights

• Kamada to hold its Annual General Meeting on 11th of December
• CEO Amir London's total compensation includes salary of US$409.0k
• Total compensation is 279% above industry average
• Kamada's total shareholder return over the past three years was 5.5% while its EPS grew by 41% over the past three years

CEO Amir London has done a decent job of delivering relatively good performance at Kamada Ltd. (TLV:KMDA) 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 11th of December. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Kamada

How Does Total Compensation For Amir London Compare With Other Companies In The Industry?

At the time of writing, our data shows that Kamada Ltd. has a market capitalization of ₪1.2b, and reported total annual CEO compensation of US$861k for the year to December 2023. Notably, that's an increase of 26% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$409k.

On comparing similar companies from the Israel Biotechs industry with market caps ranging from ₪723m to ₪2.9b, we found that the median CEO total compensation was US$227k. Hence, we can conclude that Amir London is remunerated higher than the industry median. What's more, Amir London holds ₪1.3m 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$409k	US$410k	48%
Other	US$452k	US$274k	52%
Total Compensation	US$861k	US$684k	100%

On an industry level, roughly 79% of total compensation represents salary and 21% is other remuneration. Kamada 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.

Kamada Ltd.'s Growth

Over the past three years, Kamada Ltd. has seen its earnings per share (EPS) grow by 41% per year. It achieved revenue growth of 4.5% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Kamada Ltd. Been A Good Investment?

Kamada Ltd. has generated a total shareholder return of 5.5% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

Whatever your view on compensation, you might want to check if insiders are buying or selling Kamada shares (free trial).

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.