Shareholders Will Probably Hold Off On Increasing Axilion Smart Mobility Ltd's (TLV:AILN) CEO Compensation For The Time Being

Key Insights

• Axilion Smart Mobility will host its Annual General Meeting on 9th of September
• Total pay for CEO Yaakov Sela includes ₪1.21m salary
• The overall pay is comparable to the industry average
• Axilion Smart Mobility's EPS grew by 17% over the past three years while total shareholder loss over the past three years was 83%

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Shareholders of Axilion Smart Mobility Ltd (TLV:AILN) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 9th of September could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. 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 Axilion Smart Mobility

Comparing Axilion Smart Mobility Ltd's CEO Compensation With The Industry

Our data indicates that Axilion Smart Mobility Ltd has a market capitalization of ₪16m, and total annual CEO compensation was reported as ₪1.6m for the year to December 2024. That's a notable decrease of 23% on last year. In particular, the salary of ₪1.21m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Israel Software industry with market capitalizations below ₪677m, we found that the median total CEO compensation was ₪1.3m. This suggests that Axilion Smart Mobility remunerates its CEO largely in line with the industry average.

Component	2024	2023	Proportion (2024)
Salary	₪1.2m	₪1.2m	76%
Other	₪383k	₪853k	24%
Total Compensation	₪1.6m	₪2.1m	100%

On an industry level, around 79% of total compensation represents salary and 21% is other remuneration. Our data reveals that Axilion Smart Mobility allocates salary more or less in line with the wider market. 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.

Axilion Smart Mobility Ltd's Growth

Axilion Smart Mobility Ltd's earnings per share (EPS) grew 17% per year over the last three years. It saw its revenue drop 22% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Axilion Smart Mobility Ltd Been A Good Investment?

With a total shareholder return of -83% over three years, Axilion Smart Mobility Ltd shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 5 warning signs (and 4 which are potentially serious) in Axilion Smart Mobility we think you should know about.

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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.