We Think Shareholders Will Probably Be Generous With Knafaim Holdings Ltd.'s (TLV:KNFM) CEO Compensation

Key Insights

• Knafaim Holdings to hold its Annual General Meeting on 29th of December
• CEO Eran Ben-Menahem's total compensation includes salary of US$316.1k
• The total compensation is similar to the average for the industry
• Knafaim Holdings' EPS grew by 105% over the past three years while total shareholder return over the past three years was 132%

We have been pretty impressed with the performance at Knafaim Holdings Ltd. (TLV:KNFM) recently and CEO Eran Ben-Menahem deserves a mention for their role in it. Coming up to the next AGM on 29th of December, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Knafaim Holdings

How Does Total Compensation For Eran Ben-Menahem Compare With Other Companies In The Industry?

Our data indicates that Knafaim Holdings Ltd. has a market capitalization of ₪227m, and total annual CEO compensation was reported as US$440k for the year to December 2023. We note that's an increase of 15% above last year. Notably, the salary which is US$316.1k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Israel Airlines industry with market capitalizations below ₪728m, we found that the median total CEO compensation was US$402k. From this we gather that Eran Ben-Menahem is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	US$316k	US$295k	72%
Other	US$124k	US$88k	28%
Total Compensation	US$440k	US$383k	100%

On an industry level, around 44% of total compensation represents salary and 56% is other remuneration. Knafaim Holdings is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Knafaim Holdings Ltd.'s Growth Numbers

Knafaim Holdings Ltd.'s earnings per share (EPS) grew 105% per year over the last three years. It achieved revenue growth of 7.0% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Knafaim Holdings Ltd. Been A Good Investment?

We think that the total shareholder return of 132%, over three years, would leave most Knafaim Holdings 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...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term 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 Knafaim Holdings (2 are concerning!) 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.