Shareholders May Be A Bit More Conservative With SaverOne 2014 Ltd.'s (TLV:SVRE) CEO Compensation For Now

Key Insights

• SaverOne 2014's Annual General Meeting to take place on 8th of December
• Salary of ₪1.38m is part of CEO Ori Gilboa's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, SaverOne 2014's EPS grew by 53% and over the past three years, the total loss to shareholders 100%

In the past three years, the share price of SaverOne 2014 Ltd. (TLV:SVRE) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 8th of December 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.

See our latest analysis for SaverOne 2014

How Does Total Compensation For Ori Gilboa Compare With Other Companies In The Industry?

According to our data, SaverOne 2014 Ltd. has a market capitalization of ₪7.7m, and paid its CEO total annual compensation worth ₪1.9m over the year to December 2023. This means that the compensation hasn't changed much from last year. Notably, the salary which is ₪1.38m, represents most of the total compensation being paid.

For comparison, other companies in the Israel Electronic industry with market capitalizations below ₪726m, reported a median total CEO compensation of ₪1.5m. From this we gather that Ori Gilboa is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	₪1.4m	₪1.3m	72%
Other	₪543k	₪663k	28%
Total Compensation	₪1.9m	₪2.0m	100%

On an industry level, roughly 66% of total compensation represents salary and 34% is other remuneration. There isn't a significant difference between SaverOne 2014 and the broader market, in terms of salary allocation in the overall compensation package. 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.

SaverOne 2014 Ltd.'s Growth

SaverOne 2014 Ltd.'s earnings per share (EPS) grew 53% per year over the last three years. Its revenue is down 24% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has SaverOne 2014 Ltd. Been A Good Investment?

The return of -100% over three years would not have pleased SaverOne 2014 Ltd. shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

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 probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 5 warning signs for SaverOne 2014 (4 make us uncomfortable!) that you should be aware of before investing here.

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.