We Take A Look At Why Bet Shemesh Engines Holdings (1997) Ltd's (TLV:BSEN) CEO Has Earned Their Pay Packet

Key Insights

• Bet Shemesh Engines Holdings (1997) to hold its Annual General Meeting on 22nd of September
• Total pay for CEO Ram Drori includes US$430.0k salary
• The total compensation is similar to the average for the industry
• Bet Shemesh Engines Holdings (1997)'s total shareholder return over the past three years was 328% while its EPS grew by 122% over the past three years

We have been pretty impressed with the performance at Bet Shemesh Engines Holdings (1997) Ltd (TLV:BSEN) recently and CEO Ram Drori deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 22nd of September. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for Bet Shemesh Engines Holdings (1997)

How Does Total Compensation For Ram Drori Compare With Other Companies In The Industry?

Our data indicates that Bet Shemesh Engines Holdings (1997) Ltd has a market capitalization of ₪2.0b, and total annual CEO compensation was reported as US$1.1m for the year to December 2023. We note that's an increase of 32% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$430k.

On comparing similar companies from the Israel Aerospace & Defense industry with market caps ranging from ₪743m to ₪3.0b, we found that the median CEO total compensation was US$832k. So it looks like Bet Shemesh Engines Holdings (1997) compensates Ram Drori in line with the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	US$430k	US$430k	41%
Other	US$629k	US$375k	59%
Total Compensation	US$1.1m	US$805k	100%

On an industry level, roughly 61% of total compensation represents salary and 39% is other remuneration. It's interesting to note that Bet Shemesh Engines Holdings (1997) allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Bet Shemesh Engines Holdings (1997) Ltd's Growth

Bet Shemesh Engines Holdings (1997) Ltd has seen its earnings per share (EPS) increase by 122% a year over the past three years. It achieved revenue growth of 31% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Bet Shemesh Engines Holdings (1997) Ltd Been A Good Investment?

Most shareholders would probably be pleased with Bet Shemesh Engines Holdings (1997) Ltd for providing a total return of 328% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which makes us a bit uncomfortable) in Bet Shemesh Engines Holdings (1997) we think you should know about.

Important note: Bet Shemesh Engines Holdings (1997) 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.

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

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.