Some Shareholders May find It Hard To Increase Partner Communications Company Ltd.'s (TLV:PTNR) CEO Compensation This Year
Key Insights
- Partner Communications will host its Annual General Meeting on 5th of May
- CEO Avi Gabbay's total compensation includes salary of ₪2.45m
- The overall pay is comparable to the industry average
- Partner Communications' EPS grew by 33% over the past three years while total shareholder return over the past three years was 2.5%
Under the guidance of CEO Avi Gabbay, Partner Communications Company Ltd. (TLV:PTNR) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 5th of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
Check out our latest analysis for Partner Communications
Comparing Partner Communications Company Ltd.'s CEO Compensation With The Industry
Our data indicates that Partner Communications Company Ltd. has a market capitalization of ₪4.6b, and total annual CEO compensation was reported as ₪6.7m for the year to December 2024. That's mostly flat as compared to the prior year's compensation. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₪2.4m.
For comparison, other companies in the Israel Wireless Telecom industry with market capitalizations ranging between ₪3.6b and ₪12b had a median total CEO compensation of ₪8.9m. From this we gather that Avi Gabbay is paid around the median for CEOs in the industry.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | ₪2.4m | ₪2.4m | 37% |
| Other | ₪4.2m | ₪4.1m | 63% |
| Total Compensation | ₪6.7m | ₪6.5m | 100% |
On an industry level, roughly 59% of total compensation represents salary and 41% is other remuneration. Partner Communications pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Partner Communications Company Ltd.'s Growth Numbers
Partner Communications Company Ltd.'s earnings per share (EPS) grew 33% per year over the last three years. Revenue was pretty flat on last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Partner Communications Company Ltd. Been A Good Investment?
With a total shareholder return of 2.5% over three years, Partner Communications Company Ltd. has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.
In Summary...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Partner Communications that you should be aware of before investing.
Important note: Partner Communications is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.