Shareholders May Be Wary Of Increasing Bait Vegag Real Estate Development Ltd's (TLV:BVGG) CEO Compensation Package

Key Insights

• Bait Vegag Real Estate Development will host its Annual General Meeting on 1st of June
• Total pay for CEO Ronan Ekabia includes ₪1.60m salary
• The total compensation is 46% higher than the average for the industry
• Bait Vegag Real Estate Development's EPS declined by 60% over the past three years while total shareholder loss over the past three years was 12%

We've discovered 1 warning sign about Bait Vegag Real Estate Development. View them for free.

The results at Bait Vegag Real Estate Development Ltd (TLV:BVGG) have been quite disappointing recently and CEO Ronan Ekabia bears some responsibility for this. At the upcoming AGM on 1st of June, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for Bait Vegag Real Estate Development

Comparing Bait Vegag Real Estate Development Ltd's CEO Compensation With The Industry

At the time of writing, our data shows that Bait Vegag Real Estate Development Ltd has a market capitalization of ₪398m, and reported total annual CEO compensation of ₪2.6m for the year to December 2024. Notably, that's a decrease of 8.7% over the year before. Notably, the salary which is ₪1.60m, represents most of the total compensation being paid.

For comparison, other companies in the Israel Real Estate industry with market capitalizations below ₪720m, reported a median total CEO compensation of ₪1.8m. This suggests that Ronan Ekabia is paid more than the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	₪1.6m	₪1.6m	62%
Other	₪1.0m	₪1.3m	38%
Total Compensation	₪2.6m	₪2.9m	100%

Speaking on an industry level, nearly 61% of total compensation represents salary, while the remainder of 39% is other remuneration. There isn't a significant difference between Bait Vegag Real Estate Development and the broader market, in terms of salary allocation in the overall compensation package. 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 Bait Vegag Real Estate Development Ltd's Growth Numbers

Bait Vegag Real Estate Development Ltd has reduced its earnings per share by 60% a year over the last three years. Its revenue is up 7.9% over the last year.

Few shareholders would be pleased to read that EPS have declined. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Bait Vegag Real Estate Development Ltd Been A Good Investment?

With a three year total loss of 12% for the shareholders, Bait Vegag Real Estate Development Ltd would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too 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 compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Bait Vegag Real Estate Development that you should be aware of before investing.

Switching gears from Bait Vegag Real Estate Development, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.