This Is Why Shareholders Will Hold Back On A Pay Rise For Maslavi Construction Company Ltd's (TLV:MSLA) CEO This Year

Key Insights

• Maslavi Construction to hold its Annual General Meeting on 30th of October
• Salary of ₪925.0k is part of CEO Eran Mazor's total remuneration
• The overall pay is comparable to the industry average
• Maslavi Construction's total shareholder return over the past three years was 3.5% while its EPS grew by 31% over the past three years

CEO Eran Mazor has done a decent job of delivering relatively good performance at Maslavi Construction Company Ltd (TLV:MSLA) 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 30th of October. Here is our take on why we think the CEO compensation looks appropriate.

See our latest analysis for Maslavi Construction

How Does Total Compensation For Eran Mazor Compare With Other Companies In The Industry?

At the time of writing, our data shows that Maslavi Construction Company Ltd has a market capitalization of ₪300m, and reported total annual CEO compensation of ₪2.4m for the year to December 2023. Notably, that's an increase of 15% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at ₪925k.

For comparison, other companies in the Israel Real Estate industry with market capitalizations below ₪758m, reported a median total CEO compensation of ₪1.9m. From this we gather that Eran Mazor is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	₪925k	₪915k	38%
Other	₪1.5m	₪1.2m	62%
Total Compensation	₪2.4m	₪2.1m	100%

On an industry level, around 53% of total compensation represents salary and 47% is other remuneration. Maslavi Construction sets aside a smaller share of compensation for salary, in comparison to the overall 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 has seen its earnings per share (EPS) increase by 31% a year over the past three years. In the last year, its revenue is up 37%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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?

Maslavi Construction Company Ltd has generated a total shareholder return of 3.5% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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. In our study, we found 5 warning signs for Maslavi Construction you should be aware of, and 2 of them are potentially serious.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.