We Think Shareholders May Want To Consider A Review Of Adgar Investments and Development Ltd's (TLV:ADGR) CEO Compensation Package

Key Insights

• Adgar Investments and Development's Annual General Meeting to take place on 18th of December
• Salary of ₪1.61m is part of CEO Roy Gadish's total remuneration
• Total compensation is 57% above industry average
• Adgar Investments and Development's three-year loss to shareholders was 10.0% while its EPS was down 37% over the past three years

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Shareholders will probably not be too impressed with the underwhelming results at Adgar Investments and Development Ltd (TLV:ADGR) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 18th of December. 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. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for Adgar Investments and Development

Comparing Adgar Investments and Development Ltd's CEO Compensation With The Industry

Our data indicates that Adgar Investments and Development Ltd has a market capitalization of ₪802m, and total annual CEO compensation was reported as ₪3.2m for the year to December 2024. Notably, that's a decrease of 29% over the year before. We note that the salary of ₪1.61m makes up a sizeable portion of the total compensation received by the CEO.

For comparison, other companies in the Israel Real Estate industry with market capitalizations ranging between ₪321m and ₪1.3b had a median total CEO compensation of ₪2.0m. Hence, we can conclude that Roy Gadish is remunerated higher than the industry median. Moreover, Roy Gadish also holds ₪11m worth of Adgar Investments and Development stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 62% of total compensation represents salary and 38% is other remuneration. Adgar Investments and Development sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Adgar Investments and Development Ltd's Growth Numbers

Over the last three years, Adgar Investments and Development Ltd has shrunk its earnings per share by 37% per year. Its revenue is up 2.5% over the last year.

Overall this is not a very positive result for shareholders. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. 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 Adgar Investments and Development Ltd Been A Good Investment?

Since shareholders would have lost about 10.0% over three years, some Adgar Investments and Development Ltd investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 4 warning signs for Adgar Investments and Development you should be aware of, and 2 of them are significant.

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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.