Here's Why O.R.T. Technologies Ltd's (TLV:ORTC) CEO May Not Expect A Pay Rise This Year

Key Insights

• O.R.T. Technologies' Annual General Meeting to take place on 19th of December
• Salary of ₪755.0k is part of CEO Tamar Raz's total remuneration
• The total compensation is 44% less than the average for the industry
• Over the past three years, O.R.T. Technologies' EPS fell by 19% and over the past three years, the total loss to shareholders 36%

Performance at O.R.T. Technologies Ltd (TLV:ORTC) has not been particularly rosy recently and shareholders will likely be holding CEO Tamar Raz and the board accountable for this. At the upcoming AGM on 19th of December, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. From our analysis below, we think CEO compensation looks appropriate for now.

See our latest analysis for O.R.T. Technologies

How Does Total Compensation For Tamar Raz Compare With Other Companies In The Industry?

At the time of writing, our data shows that O.R.T. Technologies Ltd has a market capitalization of ₪72m, and reported total annual CEO compensation of ₪839k for the year to December 2022. We note that's an increase of 14% above last year. In particular, the salary of ₪755.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Israel Electronic industry with market capitalizations under ₪742m, the reported median total CEO compensation was ₪1.5m. Accordingly, O.R.T. Technologies pays its CEO under the industry median.

Component	2022	2021	Proportion (2022)
Salary	₪755k	₪734k	90%
Other	₪84k	-	10%
Total Compensation	₪839k	₪734k	100%

On an industry level, around 68% of total compensation represents salary and 32% is other remuneration. It's interesting to note that O.R.T. Technologies pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

O.R.T. Technologies Ltd's Growth

Over the last three years, O.R.T. Technologies Ltd has shrunk its earnings per share by 19% per year. It saw its revenue drop 23% over the last year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has O.R.T. Technologies Ltd Been A Good Investment?

With a total shareholder return of -36% over three years, O.R.T. Technologies Ltd shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in 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 O.R.T. Technologies (of which 1 shouldn't be ignored!) 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.

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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.