S
ella Capital Real Estate Ltd. (TLV:SLARL) is set to host its Annual General Meeting on November 10th, where shareholders will have a chance to discuss the company's underwhelming performance and influence managerial decision-making through voting on resolutions such as executive remuneration.

    CEO Gadi Elikam's total compensation for the year was ₪3.3m, with a salary of ₪2.07m making up the majority of his pay. This is comparable to the industry average, but considering the company's recent performance, it may be worth reviewing. Notably, CEO Elikam holds ₪10m worth of shares in the company, indicating he has a significant stake.

    Over the past three years, Sella Capital Real Estate's earnings per share (EPS) have fallen by 8.4%, and shareholders have lost around 18% of their investment. The company's revenue growth of 4.6% in the last year is not impressive given the decline in EPS. This weak performance may lead shareholders to question high compensation for the CEO.

    At the AGM, the board will outline its plans to improve business performance, and CEO compensation is an area that deserves attention. However, it's essential to consider other attributes of the company as well. We've identified 4 warning signs (and 2 concerning ones) in Sella Capital Real Estate that investors should be aware of.

    Business quality is more critical than CEO compensation levels, so it's worth exploring companies with high return on equity and low debt. Our research suggests that Sella Capital Real Estate may not meet these criteria, making it essential to keep a close eye on the company's performance moving forward.