We Think Some Shareholders May Hesitate To Increase Foresight Autonomous Holdings Ltd.'s (TLV:FRSX) CEO Compensation

Key Insights

• Foresight Autonomous Holdings to hold its Annual General Meeting on 26th of August
• CEO Haim Siboni's total compensation includes salary of US$277.6k
• The overall pay is 486% above the industry average
• Foresight Autonomous Holdings' three-year loss to shareholders was 95% while its EPS grew by 4.5% over the past three years

In the past three years, the share price of Foresight Autonomous Holdings Ltd. (TLV:FRSX) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 26th of August could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Foresight Autonomous Holdings

How Does Total Compensation For Haim Siboni Compare With Other Companies In The Industry?

Our data indicates that Foresight Autonomous Holdings Ltd. has a market capitalization of ₪48m, and total annual CEO compensation was reported as US$429k for the year to December 2023. Notably, that's a decrease of 26% over the year before. We note that the salary portion, which stands at US$277.6k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Israel Auto Components industry with market capitalizations below ₪739m, reported a median total CEO compensation of US$73k. Accordingly, our analysis reveals that Foresight Autonomous Holdings Ltd. pays Haim Siboni north of the industry median.

Component	2023	2022	Proportion (2023)
Salary	US$278k	US$357k	65%
Other	US$152k	US$222k	35%
Total Compensation	US$429k	US$579k	100%

Talking in terms of the industry, salary represented approximately 71% of total compensation out of all the companies we analyzed, while other remuneration made up 29% of the pie. Foresight Autonomous Holdings is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Foresight Autonomous Holdings Ltd.'s Growth

Over the past three years, Foresight Autonomous Holdings Ltd. has seen its earnings per share (EPS) grow by 4.5% per year. In the last year, its revenue is up 87%.

It's great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn't shabby. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! 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.

Has Foresight Autonomous Holdings Ltd. Been A Good Investment?

With a total shareholder return of -95% over three years, Foresight Autonomous Holdings Ltd. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 5 warning signs for Foresight Autonomous Holdings you should be aware of, and 3 of them are a bit concerning.

Important note: Foresight Autonomous Holdings 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.