We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Norstar Holdings Inc's (TLV:NSTR) CEO For Now

Key Insights

• Norstar Holdings will host its Annual General Meeting on 8th of October
• Total pay for CEO Chaim Katzman includes ₪3.86m salary
• The overall pay is 188% above the industry average
• Norstar Holdings' three-year loss to shareholders was 51% while its EPS grew by 35% over the past three years

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Shareholders of Norstar Holdings Inc (TLV:NSTR) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 8th of October. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Norstar Holdings

Comparing Norstar Holdings Inc's CEO Compensation With The Industry

Our data indicates that Norstar Holdings Inc has a market capitalization of ₪663m, and total annual CEO compensation was reported as ₪5.9m for the year to December 2024. That's slightly lower by 4.5% over the previous year. In particular, the salary of ₪3.86m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Israel Real Estate industry with market capitalizations ranging between ₪332m and ₪1.3b had a median total CEO compensation of ₪2.1m. Hence, we can conclude that Chaim Katzman is remunerated higher than the industry median. Moreover, Chaim Katzman also holds ₪111m worth of Norstar Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 62% of total compensation represents salary and 38% is other remuneration. Norstar Holdings is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Norstar Holdings Inc's Growth Numbers

Norstar Holdings Inc has seen its earnings per share (EPS) increase by 35% a year over the past three years. It saw its revenue drop 2.5% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 Norstar Holdings Inc Been A Good Investment?

The return of -51% over three years would not have pleased Norstar Holdings Inc shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Norstar Holdings that investors should think about before committing capital to this stock.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.