Unitronics (1989) (R"G) Ltd's (TLV:UNIT) CEO Looks Like They Deserve Their Pay Packet

Key Insights

• Unitronics (1989) (RG)'s Annual General Meeting to take place on 22nd of June
• CEO Amit Harari's total compensation includes salary of ₪923.0k
• The overall pay is comparable to the industry average
• Unitronics (1989) (RG)'s total shareholder return over the past three years was 65% while its EPS grew by 25% over the past three years

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The performance at Unitronics (1989) (R"G) Ltd (TLV:UNIT) has been quite strong recently and CEO Amit Harari has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 22nd of June. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for Unitronics (1989) (RG)

How Does Total Compensation For Amit Harari Compare With Other Companies In The Industry?

According to our data, Unitronics (1989) (R"G) Ltd has a market capitalization of ₪371m, and paid its CEO total annual compensation worth ₪1.5m over the year to December 2024. This means that the compensation hasn't changed much from last year. In particular, the salary of ₪923.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Israel Electronic industry with market capitalizations below ₪724m, we found that the median total CEO compensation was ₪1.3m. So it looks like Unitronics (1989) (RG) compensates Amit Harari in line with the median for the industry.

On an industry level, around 54% of total compensation represents salary and 46% is other remuneration. Unitronics (1989) (RG) is paying a higher share of its remuneration through a salary in comparison to the overall industry. 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.

A Look at Unitronics (1989) (R"G) Ltd's Growth Numbers

Unitronics (1989) (R"G) Ltd's earnings per share (EPS) grew 25% per year over the last three years. It saw its revenue drop 17% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Unitronics (1989) (R"G) Ltd Been A Good Investment?

We think that the total shareholder return of 65%, over three years, would leave most Unitronics (1989) (R"G) Ltd shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which is a bit concerning) in Unitronics (1989) (RG) we think you should know about.

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.