We Think Shareholders May Want To Consider A Review Of Overseas Commerce Ltd.'s (TLV:OVRS) CEO Compensation Package

Key Insights

• Overseas Commerce will host its Annual General Meeting on 2nd of September
• Total pay for CEO Uri Shochet includes ₪1.29m salary
• The total compensation is 895% higher than the average for the industry
• Over the past three years, Overseas Commerce's EPS fell by 16% and over the past three years, the total loss to shareholders 6.5%

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Shareholders will probably not be too impressed with the underwhelming results at Overseas Commerce Ltd. (TLV:OVRS) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 2nd of September. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Overseas Commerce

Comparing Overseas Commerce Ltd.'s CEO Compensation With The Industry

Our data indicates that Overseas Commerce Ltd. has a market capitalization of ₪249m, and total annual CEO compensation was reported as ₪1.7m for the year to December 2024. We note that's a small decrease of 7.9% on last year. We note that the salary portion, which stands at ₪1.29m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Israel Infrastructure industry with market capitalizations below ₪670m, reported a median total CEO compensation of ₪168k. Accordingly, our analysis reveals that Overseas Commerce Ltd. pays Uri Shochet north of the industry median.

On an industry level, roughly 73% of total compensation represents salary and 27% is other remuneration. Overseas Commerce is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Overseas Commerce Ltd.'s Growth

Over the last three years, Overseas Commerce Ltd. has shrunk its earnings per share by 16% per year. In the last year, its revenue is up 13%.

Few shareholders would be pleased to read that EPS have declined. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for us to put aside my concerns around EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Overseas Commerce Ltd. Been A Good Investment?

With a three year total loss of 6.5% for the shareholders, Overseas Commerce Ltd. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for Overseas Commerce you should be aware of, and 2 of them are a bit unpleasant.

Switching gears from Overseas Commerce, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.