Key Insights
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SHL Telemedicine to hold its Annual General Meeting on 7th of December
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Total pay for CEO Erez Nachtomy includes US$346.6k salary
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Total compensation is similar to the industry average
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SHL Telemedicine's EPS declined by 7.2% over the past three years while total shareholder loss over the past three years was 20%
SHL Telemedicine Ltd. (VTX:SHLTN) has not performed well recently and CEO Erez Nachtomy 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 7th of December. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.
Check out our latest analysis for SHL Telemedicine
How Does Total Compensation For Erez Nachtomy Compare With Other Companies In The Industry?
According to our data, SHL Telemedicine Ltd. has a market capitalization of CHF118m, and paid its CEO total annual compensation worth US$427k over the year to December 2022. That's a slight decrease of 7.3% on the prior year. Notably, the salary which is US$346.6k, represents most of the total compensation being paid.
In comparison with other companies in the Switzerland Healthcare industry with market capitalizations under CHF175m, the reported median total CEO compensation was US$351k. This suggests that SHL Telemedicine remunerates its CEO largely in line with the industry average.
| Component | 2022 | 2021 | Proportion (2022) |
| Salary | US$347k | US$344k | 81% |
| Other | US$80k | US$117k | 19% |
| Total Compensation | US$427k | US$461k | 100% |
On an industry level, around 51% of total compensation represents salary and 49% is other remuneration. SHL Telemedicine pays out 81% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
SHL Telemedicine Ltd.'s Growth
SHL Telemedicine Ltd. has reduced its earnings per share by 7.2% a year over the last three years. It saw its revenue drop 3.9% over the last year.
The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet 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.