It's Unlikely That Terminal X Online Ltd.'s (TLV:TRX) CEO Will See A Huge Pay Rise This Year

Key Insights

• Terminal X Online's Annual General Meeting to take place on 13th of August
• CEO Alon Lurie's total compensation includes salary of ₪961.0k
• Total compensation is 79% above industry average
• Terminal X Online's EPS grew by 120% over the past three years while total shareholder loss over the past three years was 35%

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The underwhelming share price performance of Terminal X Online Ltd. (TLV:TRX) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 13th of August. 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.

See our latest analysis for Terminal X Online

Comparing Terminal X Online Ltd.'s CEO Compensation With The Industry

Our data indicates that Terminal X Online Ltd. has a market capitalization of ₪673m, and total annual CEO compensation was reported as ₪2.5m for the year to December 2024. We note that's a small decrease of 6.7% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₪961k.

In comparison with other companies in the Israel Multiline Retail industry with market capitalizations ranging from ₪343m to ₪1.4b, the reported median CEO total compensation was ₪1.4m. Hence, we can conclude that Alon Lurie is remunerated higher than the industry median. What's more, Alon Lurie holds ₪443k worth of shares in the company in their own name.

Speaking on an industry level, nearly 69% of total compensation represents salary, while the remainder of 31% is other remuneration. It's interesting to note that Terminal X Online allocates a smaller portion of compensation to salary in comparison 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.

Terminal X Online Ltd.'s Growth

Terminal X Online Ltd. has seen its earnings per share (EPS) increase by 120% a year over the past three years. Its revenue is up 13% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Terminal X Online Ltd. Been A Good Investment?

Few Terminal X Online Ltd. shareholders would feel satisfied with the return of -35% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Terminal X Online.

Important note: Terminal X Online 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.