Increases to Solaer Renewable Energies Ltd's (TLV:SOLR) CEO Compensation Might Cool off for now

Key Insights

• Solaer Renewable Energies will host its Annual General Meeting on 15th of October
• Salary of ₪1.40m is part of CEO Alon Segev's total remuneration
• The overall pay is 736% above the industry average
• Solaer Renewable Energies' EPS declined by 13% over the past three years while total shareholder return over the past three years was 20%

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Performance at Solaer Renewable Energies Ltd (TLV:SOLR) has been reasonably good and CEO Alon Segev has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 15th of October, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Solaer Renewable Energies

Comparing Solaer Renewable Energies Ltd's CEO Compensation With The Industry

At the time of writing, our data shows that Solaer Renewable Energies Ltd has a market capitalization of ₪756m, and reported total annual CEO compensation of ₪1.4m for the year to December 2024. We note that's an increase of 30% above last year. We note that the salary portion, which stands at ₪1.40m constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the Israel Renewable Energy industry with market capitalizations between ₪328m and ₪1.3b, we discovered that the median CEO total compensation of that group was ₪173k. Hence, we can conclude that Alon Segev is remunerated higher than the industry median.

Speaking on an industry level, nearly 61% of total compensation represents salary, while the remainder of 39% is other remuneration. Investors will find it interesting that Solaer Renewable Energies pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Solaer Renewable Energies Ltd's Growth Numbers

Over the last three years, Solaer Renewable Energies Ltd has shrunk its earnings per share by 13% per year. Its revenue is up 102% over the last year.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Solaer Renewable Energies Ltd Been A Good Investment?

Solaer Renewable Energies Ltd has served shareholders reasonably well, with a total return of 20% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Solaer Renewable Energies pays its CEO a majority of compensation through a salary. Some shareholders will be pleased by the relatively good results, however, the results could still be improved. EPS growth is still weak, and until that picks up, shareholders may find it hard to approve a pay rise for the CEO, since they are already paid above the average in their industry.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Solaer Renewable Energies that you should be aware of before investing.

Important note: Solaer Renewable Energies 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.