Shareholders May Be More Conservative With Speedvalue Ltd's (TLV:SPDV) CEO Compensation For Now

Key Insights

• Speedvalue to hold its Annual General Meeting on 18th of November
• Total pay for CEO Tali Shem Tov includes ₪809.0k salary
• The overall pay is 348% above the industry average
• Speedvalue's EPS declined by 32% over the past three years while total shareholder loss over the past three years was 24%

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

In the past three years, the share price of Speedvalue Ltd (TLV:SPDV) has struggled to grow and now shareholders are sitting on a loss. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. The AGM coming up on 18th of November will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

See our latest analysis for Speedvalue

How Does Total Compensation For Tali Shem Tov Compare With Other Companies In The Industry?

Our data indicates that Speedvalue Ltd has a market capitalization of ₪54m, and total annual CEO compensation was reported as ₪839k for the year to December 2024. That's a notable decrease of 14% on last year. Notably, the salary which is ₪809.0k, represents most of the total compensation being paid.

For comparison, other companies in the Israel IT industry with market capitalizations below ₪645m, reported a median total CEO compensation of ₪187k. This suggests that Tali Shem Tov is paid more than the median for the industry. Moreover, Tali Shem Tov also holds ₪5.8m worth of Speedvalue stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	₪809k	₪818k	96%
Other	₪30k	₪152k	4%
Total Compensation	₪839k	₪970k	100%

On an industry level, roughly 45% of total compensation represents salary and 55% is other remuneration. Speedvalue is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Speedvalue Ltd's Growth

Over the last three years, Speedvalue Ltd has shrunk its earnings per share by 32% per year. In the last year, its revenue is up 44%.

The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Speedvalue Ltd Been A Good Investment?

Since shareholders would have lost about 24% over three years, some Speedvalue Ltd investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Tali receives almost all of their compensation through a salary. The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. Shareholders will get the chance at the upcoming AGM 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. That's why we did our research, and identified 3 warning signs for Speedvalue (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

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.

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.