Shareholders May Not Be So Generous With Kamada Ltd.'s (TLV:KMDA) CEO Compensation And Here's Why
Key Insights
- Kamada will host its Annual General Meeting on 10th of December
- Salary of US$421.0k is part of CEO Amir London's total remuneration
- The overall pay is 191% above the industry average
- Over the past three years, Kamada's EPS grew by 81% and over the past three years, the total shareholder return was 51%
Performance at Kamada Ltd. (TLV:KMDA) has been reasonably good and CEO Amir London has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 10th of December. However, some shareholders may still want to keep CEO compensation within reason.
Check out our latest analysis for Kamada
How Does Total Compensation For Amir London Compare With Other Companies In The Industry?
Our data indicates that Kamada Ltd. has a market capitalization of ₪1.3b, and total annual CEO compensation was reported as US$795k for the year to December 2024. We note that's a small decrease of 7.7% on last year. We note that the salary of US$421.0k makes up a sizeable portion of the total compensation received by the CEO.
On comparing similar companies from the Israel Biotechs industry with market caps ranging from ₪647m to ₪2.6b, we found that the median CEO total compensation was US$273k. This suggests that Amir London is paid more than the median for the industry. Moreover, Amir London also holds ₪1.4m worth of Kamada stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$421k | US$409k | 53% |
| Other | US$374k | US$452k | 47% |
| Total Compensation | US$795k | US$861k | 100% |
On an industry level, roughly 74% of total compensation represents salary and 26% is other remuneration. Kamada sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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.
A Look at Kamada Ltd.'s Growth Numbers
Over the past three years, Kamada Ltd. has seen its earnings per share (EPS) grow by 81% per year. In the last year, its revenue is up 10%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Kamada Ltd. Been A Good Investment?
Most shareholders would probably be pleased with Kamada Ltd. for providing a total return of 51% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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 can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Kamada that you should be aware of before investing.
Important note: Kamada 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.