Why We Think Seach Medical Group Ltd's (TLV:SEMG) CEO Compensation Is Not Excessive At All

Key Insights

• Seach Medical Group's Annual General Meeting to take place on 2nd of July
• CEO Yogev Sarid's total compensation includes salary of ₪830.0k
• The total compensation is similar to the average for the industry
• Seach Medical Group's EPS grew by 78% over the past three years while total shareholder return over the past three years was 14%

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Under the guidance of CEO Yogev Sarid, Seach Medical Group Ltd (TLV:SEMG) has performed reasonably well recently. As shareholders go into the upcoming AGM on 2nd of July, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Seach Medical Group

Comparing Seach Medical Group Ltd's CEO Compensation With The Industry

At the time of writing, our data shows that Seach Medical Group Ltd has a market capitalization of ₪97m, and reported total annual CEO compensation of ₪1.1m for the year to December 2024. That's a slight decrease of 4.7% on the prior year. We note that the salary portion, which stands at ₪830.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Israel Pharmaceuticals industry with market capitalizations below ₪681m, reported a median total CEO compensation of ₪1.0m. This suggests that Seach Medical Group remunerates its CEO largely in line with the industry average. Furthermore, Yogev Sarid directly owns ₪19m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 71% of total compensation represents salary, while the remainder of 29% is other remuneration. Seach Medical Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Seach Medical Group Ltd's Growth

Seach Medical Group Ltd has seen its earnings per share (EPS) increase by 78% a year over the past three years. It achieved revenue growth of 9.0% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Seach Medical Group Ltd Been A Good Investment?

Seach Medical Group Ltd has served shareholders reasonably well, with a total return of 14% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this 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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Seach Medical Group that investors should be aware of in a dynamic business environment.

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.