Should Shareholders Reconsider O.Y. Nofar Energy Ltd's (TLV:NOFR) CEO Compensation Package?
Key Insights
- O.Y. Nofar Energy to hold its Annual General Meeting on 26th of November
- CEO Nadav Tene's total compensation includes salary of ₪947.0k
- Total compensation is 170% above industry average
- Over the past three years, O.Y. Nofar Energy's EPS fell by 69% and over the past three years, the total loss to shareholders 8.6%
O.Y. Nofar Energy Ltd (TLV:NOFR) has not performed well recently and CEO Nadav Tene will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 26th of November. 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. The data we present below explains why we think CEO compensation is not consistent with recent performance.
See our latest analysis for O.Y. Nofar Energy
How Does Total Compensation For Nadav Tene Compare With Other Companies In The Industry?
At the time of writing, our data shows that O.Y. Nofar Energy Ltd has a market capitalization of ₪3.3b, and reported total annual CEO compensation of ₪1.0m for the year to December 2024. This means that the compensation hasn't changed much from last year. In particular, the salary of ₪947.0k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the Israel Renewable Energy industry with market capitalizations ranging from ₪1.3b to ₪5.2b, the reported median CEO total compensation was ₪374k. Hence, we can conclude that Nadav Tene is remunerated higher than the industry median.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | ₪947k | ₪921k | 94% |
| Other | ₪62k | ₪99k | 6% |
| Total Compensation | ₪1.0m | ₪1.0m | 100% |
Speaking on an industry level, nearly 61% of total compensation represents salary, while the remainder of 39% is other remuneration. O.Y. Nofar Energy pays out 94% of remuneration in the form of a salary, significantly higher than the industry average. 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.
O.Y. Nofar Energy Ltd's Growth
O.Y. Nofar Energy Ltd has reduced its earnings per share by 69% a year over the last three years. In the last year, its revenue is down 3.4%.
The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 O.Y. Nofar Energy Ltd Been A Good Investment?
Given the total shareholder loss of 8.6% over three years, many shareholders in O.Y. Nofar Energy Ltd are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for O.Y. Nofar Energy that investors should be aware of in a dynamic business environment.
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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.