It's Unlikely That The CEO Of Dekel Agri-Vision plc (LON:DKL) Will See A Huge Pay Rise This Year

Key Insights

• Dekel Agri-Vision's Annual General Meeting to take place on 12th of August
• CEO Youval Rasin's total compensation includes salary of €223.0k
• Total compensation is similar to the industry average
• Dekel Agri-Vision's EPS declined by 44% over the past three years while total shareholder loss over the past three years was 76%

The underwhelming share price performance of Dekel Agri-Vision plc (LON:DKL) in the past three years would have disappointed many shareholders. Per share earnings growth is also lacking, despite revenue growth. The AGM coming up on 12th of August will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

View our latest analysis for Dekel Agri-Vision

Comparing Dekel Agri-Vision plc's CEO Compensation With The Industry

Our data indicates that Dekel Agri-Vision plc has a market capitalization of UK£6.4m, and total annual CEO compensation was reported as €249k for the year to December 2023. Notably, that's an increase of 16% over the year before. Notably, the salary which is €223.0k, represents most of the total compensation being paid.

In comparison with other companies in the British Food industry with market capitalizations under UK£156m, the reported median total CEO compensation was €249k. This suggests that Dekel Agri-Vision remunerates its CEO largely in line with the industry average. Moreover, Youval Rasin also holds UK£787k worth of Dekel Agri-Vision stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	€223k	€182k	90%
Other	€26k	€33k	10%
Total Compensation	€249k	€215k	100%

On an industry level, roughly 47% of total compensation represents salary and 53% is other remuneration. Dekel Agri-Vision pays out 90% 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.

Dekel Agri-Vision plc's Growth

Over the last three years, Dekel Agri-Vision plc has shrunk its earnings per share by 44% per year. It achieved revenue growth of 23% over the last year.

The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Dekel Agri-Vision plc Been A Good Investment?

With a total shareholder return of -76% over three years, Dekel Agri-Vision plc shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.

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 Dekel Agri-Vision that you should be aware of before investing.

Important note: Dekel Agri-Vision 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com