We Think Some Shareholders May Hesitate To Increase Melisron Ltd.'s (TLV:MLSR) CEO Compensation

Key Insights

• Melisron will host its Annual General Meeting on 22nd of April
• CEO Ofir Sarid's total compensation includes salary of ₪2.95m
• The overall pay is 274% above the industry average
• Over the past three years, Melisron's EPS grew by 1.2% and over the past three years, the total shareholder return was 22%

We've discovered 2 warning signs about Melisron. View them for free.

CEO Ofir Sarid has done a decent job of delivering relatively good performance at Melisron Ltd. (TLV:MLSR) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 22nd of April. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Melisron

How Does Total Compensation For Ofir Sarid Compare With Other Companies In The Industry?

At the time of writing, our data shows that Melisron Ltd. has a market capitalization of ₪14b, and reported total annual CEO compensation of ₪8.7m for the year to December 2024. There was no change in the compensation compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₪2.9m.

On comparing similar companies from the Israel Real Estate industry with market caps ranging from ₪7.4b to ₪24b, we found that the median CEO total compensation was ₪2.3m. Hence, we can conclude that Ofir Sarid is remunerated higher than the industry median.

Component	2024	2024	Proportion (2024)
Salary	₪2.9m	₪2.9m	34%
Other	₪5.7m	₪5.7m	66%
Total Compensation	₪8.7m	₪8.7m	100%

Speaking on an industry level, nearly 55% of total compensation represents salary, while the remainder of 45% is other remuneration. Melisron pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Melisron Ltd.'s Growth Numbers

Melisron Ltd.'s earnings per share (EPS) grew 1.2% per year over the last three years. In the last year, its revenue is up 13%.

This revenue growth could really point to a brighter future. And the improvement in EPSis modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. 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 Melisron Ltd. Been A Good Investment?

With a total shareholder return of 22% over three years, Melisron Ltd. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 2 warning signs for Melisron you should be aware of, and 1 of them doesn't sit too well with us.

Important note: Melisron 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.