Here's Why Rekah Pharmaceutical Industry Ltd.'s (TLV:REKA) CEO May Not Expect A Pay Rise This Year

Key Insights

• Rekah Pharmaceutical Industry will host its Annual General Meeting on 20th of December
• Salary of ₪845.0k is part of CEO Mordechai Elgrabli's total remuneration
• Total compensation is 35% below industry average
• Rekah Pharmaceutical Industry's three-year loss to shareholders was 37% while its EPS was down 94% over the past three years

The disappointing performance at Rekah Pharmaceutical Industry Ltd. (TLV:REKA) will make some shareholders rather disheartened. The next AGM coming up on 20th of December will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. The data we gathered below shows that CEO compensation looks acceptable for now.

Check out our latest analysis for Rekah Pharmaceutical Industry

How Does Total Compensation For Mordechai Elgrabli Compare With Other Companies In The Industry?

According to our data, Rekah Pharmaceutical Industry Ltd. has a market capitalization of ₪175m, and paid its CEO total annual compensation worth ₪845k over the year to December 2022. This means that the compensation hasn't changed much from last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₪845k.

In comparison with other companies in the Israel Pharmaceuticals industry with market capitalizations under ₪740m, the reported median total CEO compensation was ₪1.3m. In other words, Rekah Pharmaceutical Industry pays its CEO lower than the industry median. What's more, Mordechai Elgrabli holds ₪27m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	₪845k	₪830k	100%
Other	-	-	-
Total Compensation	₪845k	₪830k	100%

On an industry level, around 65% of total compensation represents salary and 35% is other remuneration. Speaking on a company level, Rekah Pharmaceutical Industry prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Rekah Pharmaceutical Industry Ltd.'s Growth Numbers

Rekah Pharmaceutical Industry Ltd. has reduced its earnings per share by 94% a year over the last three years. Its revenue is up 9.9% over the last year.

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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Rekah Pharmaceutical Industry Ltd. Been A Good Investment?

With a total shareholder return of -37% over three years, Rekah Pharmaceutical Industry Ltd. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Rekah Pharmaceutical Industry rewards its CEO solely through a salary, ignoring non-salary benefits completely. 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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 4 warning signs for Rekah Pharmaceutical Industry (of which 2 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

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.