Most Shareholders Will Probably Agree With Maslavi Construction Company Ltd's (TLV:MSLA) CEO Compensation

Key Insights

• Maslavi Construction's Annual General Meeting to take place on 31st of December
• CEO Eran Mazor's total compensation includes salary of ₪915.0k
• The overall pay is comparable to the industry average
• Over the past three years, Maslavi Construction's EPS grew by 4.9% and over the past three years, the total shareholder return was 83%

Under the guidance of CEO Eran Mazor, Maslavi Construction Company Ltd (TLV:MSLA) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 31st of December. Here is our take on why we think the CEO compensation looks appropriate.

See our latest analysis for Maslavi Construction

Comparing Maslavi Construction Company Ltd's CEO Compensation With The Industry

At the time of writing, our data shows that Maslavi Construction Company Ltd has a market capitalization of ₪224m, and reported total annual CEO compensation of ₪2.1m for the year to December 2022. That's a slight decrease of 7.2% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₪915k.

On comparing similar-sized companies in the Israel Real Estate industry with market capitalizations below ₪722m, we found that the median total CEO compensation was ₪2.1m. From this we gather that Eran Mazor is paid around the median for CEOs in the industry.

Component	2022	2021	Proportion (2022)
Salary	₪915k	₪804k	43%
Other	₪1.2m	₪1.5m	57%
Total Compensation	₪2.1m	₪2.3m	100%

Talking in terms of the industry, salary represented approximately 49% of total compensation out of all the companies we analyzed, while other remuneration made up 51% of the pie. It's interesting to note that Maslavi Construction allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Maslavi Construction Company Ltd's Growth Numbers

Maslavi Construction Company Ltd's earnings per share (EPS) grew 4.9% per year over the last three years. In the last year, its revenue is up 37%.

It's great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn't shabby. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. 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 Maslavi Construction Company Ltd Been A Good Investment?

Most shareholders would probably be pleased with Maslavi Construction Company Ltd for providing a total return of 83% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

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. 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 pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 6 warning signs (and 2 which don't sit too well with us) in Maslavi Construction we think you should know about.

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.