Here's Why Shareholders Should Examine MirLand Development Corporation Plc's (TLV:MLD-M) CEO Compensation Package More Closely

Key Insights

• MirLand Development will host its Annual General Meeting on 16th of October
• Salary of US$351.7k is part of CEO Roman Rozental's total remuneration
• The total compensation is similar to the average for the industry
• MirLand Development's EPS declined by 81% over the past three years while total shareholder loss over the past three years was 84%

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The results at MirLand Development Corporation Plc (TLV:MLD-M) have been quite disappointing recently and CEO Roman Rozental bears some responsibility for this. At the upcoming AGM on 16th of October, shareholders can hear from the board including their plans for turning around performance. 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.

Check out our latest analysis for MirLand Development

Comparing MirLand Development Corporation Plc's CEO Compensation With The Industry

According to our data, MirLand Development Corporation Plc has a market capitalization of ₪723k, and paid its CEO total annual compensation worth US$352k over the year to December 2024. We note that's a decrease of 33% compared to last year. Notably, the salary of US$352k is the entirety of the CEO compensation.

For comparison, other companies in the Israel Real Estate industry with market capitalizations below ₪649m, reported a median total CEO compensation of US$451k. So it looks like MirLand Development compensates Roman Rozental in line with the median for the industry.

Speaking on an industry level, nearly 62% of total compensation represents salary, while the remainder of 38% is other remuneration. On a company level, MirLand Development prefers to reward its CEO through a salary, opting not to pay Roman Rozental through non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

MirLand Development Corporation Plc's Growth

Over the last three years, MirLand Development Corporation Plc has shrunk its earnings per share by 81% per year. In the last year, its revenue is down 59%.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-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 MirLand Development Corporation Plc Been A Good Investment?

The return of -84% over three years would not have pleased MirLand Development Corporation Plc shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

MirLand Development pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. 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, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 6 warning signs for MirLand Development (4 are a bit concerning!) that you should be aware of before investing here.

Switching gears from MirLand 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.