Nayax Ltd.'s (TLV:NYAX) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Nayax to hold its Annual General Meeting on 16th of July
• Total pay for CEO Yair Nechmad includes US$483.0k salary
• The total compensation is 517% higher than the average for the industry
• Nayax's EPS grew by 61% over the past three years while total shareholder return over the past three years was 113%

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Under the guidance of CEO Yair Nechmad, Nayax Ltd. (TLV:NYAX) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 16th of July. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Nayax

How Does Total Compensation For Yair Nechmad Compare With Other Companies In The Industry?

At the time of writing, our data shows that Nayax Ltd. has a market capitalization of ₪5.4b, and reported total annual CEO compensation of US$1.3m for the year to December 2024. We note that's a small decrease of 5.3% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$483k.

On examining similar-sized companies in the Israel Electronic industry with market capitalizations between ₪3.3b and ₪11b, we discovered that the median CEO total compensation of that group was US$210k. Hence, we can conclude that Yair Nechmad is remunerated higher than the industry median. Furthermore, Yair Nechmad directly owns ₪1.2b worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 52% of total compensation represents salary, while the remainder of 48% is other remuneration. Nayax sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Nayax Ltd.'s Growth

Over the past three years, Nayax Ltd. has seen its earnings per share (EPS) grow by 61% per year. In the last year, its revenue is up 34%.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Nayax Ltd. Been A Good Investment?

Most shareholders would probably be pleased with Nayax Ltd. for providing a total return of 113% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

Whatever your view on compensation, you might want to check if insiders are buying or selling Nayax shares (free trial).

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.