Increases to Mizrahi Tefahot Bank Ltd.'s (TLV:MZTF) CEO Compensation Might Cool off for now
Key Insights
- Mizrahi Tefahot Bank will host its Annual General Meeting on 14th of December
- Total pay for CEO Moshe Lari includes ₪3.22m salary
- The total compensation is 538% higher than the average for the industry
- Over the past three years, Mizrahi Tefahot Bank's EPS grew by 10% and over the past three years, the total shareholder return was 118%
CEO Moshe Lari has done a decent job of delivering relatively good performance at Mizrahi Tefahot Bank Ltd. (TLV:MZTF) recently. As shareholders go into the upcoming AGM on 14th of December, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.
Check out our latest analysis for Mizrahi Tefahot Bank
How Does Total Compensation For Moshe Lari Compare With Other Companies In The Industry?
At the time of writing, our data shows that Mizrahi Tefahot Bank Ltd. has a market capitalization of ₪61b, and reported total annual CEO compensation of ₪4.8m for the year to December 2024. That's just a smallish increase of 4.8% on last year. Notably, the salary which is ₪3.22m, represents most of the total compensation being paid.
For comparison, other companies in the Israeli Banks industry with market capitalizations above ₪26b, reported a median total CEO compensation of ₪747k. Accordingly, our analysis reveals that Mizrahi Tefahot Bank Ltd. pays Moshe Lari north of the industry median.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | ₪3.2m | ₪3.1m | 67% |
| Other | ₪1.6m | ₪1.4m | 33% |
| Total Compensation | ₪4.8m | ₪4.6m | 100% |
Speaking on an industry level, nearly 71% of total compensation represents salary, while the remainder of 29% is other remuneration. Our data reveals that Mizrahi Tefahot Bank allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Mizrahi Tefahot Bank Ltd.'s Growth
Mizrahi Tefahot Bank Ltd.'s earnings per share (EPS) grew 10% per year over the last three years. It achieved revenue growth of 5.4% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Mizrahi Tefahot Bank Ltd. Been A Good Investment?
Most shareholders would probably be pleased with Mizrahi Tefahot Bank Ltd. for providing a total return of 118% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Mizrahi Tefahot Bank that you should be aware of before investing.
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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