It Looks Like Rekah Pharmaceutical Industry Ltd.'s (TLV:REKA) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Rekah Pharmaceutical Industry's Annual General Meeting to take place on 7th of August
• CEO Mordechai Elgrabli's total compensation includes salary of ₪857.0k
• Total compensation is similar to the industry average
• Over the past three years, Rekah Pharmaceutical Industry's EPS fell by 22% and over the past three years, the total loss to shareholders 40%

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Rekah Pharmaceutical Industry Ltd. (TLV:REKA) has not performed well recently and CEO Mordechai Elgrabli will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 7th of August. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Rekah Pharmaceutical Industry

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

Our data indicates that Rekah Pharmaceutical Industry Ltd. has a market capitalization of ₪136m, and total annual CEO compensation was reported as ₪857k for the year to December 2024. We note that's a decrease of 15% compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₪857k.

In comparison with other companies in the Israel Pharmaceuticals industry with market capitalizations under ₪680m, the reported median total CEO compensation was ₪1.0m. So it looks like Rekah Pharmaceutical Industry compensates Mordechai Elgrabli in line with the median for the industry. What's more, Mordechai Elgrabli holds ₪21m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 71% of total compensation represents salary and 29% is other remuneration. At the company level, Rekah Pharmaceutical Industry pays Mordechai Elgrabli solely through a salary, preferring to go down a conventional route. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Rekah Pharmaceutical Industry Ltd.'s Growth

Rekah Pharmaceutical Industry Ltd. has reduced its earnings per share by 22% a year over the last three years. Its revenue is down 7.3% over the previous year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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?

Few Rekah Pharmaceutical Industry Ltd. shareholders would feel satisfied with the return of -40% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Rekah Pharmaceutical Industry rewards its CEO solely through a salary, ignoring non-salary benefits completely. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO 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.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for Rekah Pharmaceutical Industry that investors should think about before committing capital to this stock.

Important note: Rekah Pharmaceutical Industry is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.