Shareholders Will Probably Hold Off On Increasing SaverOne 2014 Ltd.'s (TLV:SVRE) CEO Compensation For The Time Being

Key Insights

• SaverOne 2014's Annual General Meeting to take place on 17th of November
• Total pay for CEO Ori Gilboa includes ₪1.38m salary
• The total compensation is similar to the average for the industry
• SaverOne 2014's three-year loss to shareholders was 100% while its EPS grew by 53% over the past three years

The underwhelming share price performance of SaverOne 2014 Ltd. (TLV:SVRE) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 17th of November. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for SaverOne 2014

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

Our data indicates that SaverOne 2014 Ltd. has a market capitalization of ₪7.5m, and total annual CEO compensation was reported as ₪1.9m for the year to December 2023. That's mostly flat as compared to the prior year's compensation. In particular, the salary of ₪1.38m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Israel Electronic industry with market capitalizations below ₪750m, reported a median total CEO compensation of ₪1.5m. This suggests that SaverOne 2014 remunerates its CEO largely in line with the industry average.

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

Talking in terms of the industry, salary represented approximately 67% of total compensation out of all the companies we analyzed, while other remuneration made up 33% of the pie. Although there is a difference in how total compensation is set, SaverOne 2014 more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

SaverOne 2014 Ltd.'s Growth

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

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has SaverOne 2014 Ltd. Been A Good Investment?

With a total shareholder return of -100% over three years, SaverOne 2014 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...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. 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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 5 warning signs for SaverOne 2014 (4 are potentially serious!) 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.