FMS Enterprises Migun Ltd's (TLV:FBRT) CEO Looks Like They Deserve Their Pay Packet

Key Insights

• FMS Enterprises Migun will host its Annual General Meeting on 30th of December
• CEO Daniel Blum's total compensation includes salary of US$703.0k
• The overall pay is comparable to the industry average
• Over the past three years, FMS Enterprises Migun's EPS grew by 29% and over the past three years, the total shareholder return was 74%

It would be hard to discount the role that CEO Daniel Blum has played in delivering the impressive results at FMS Enterprises Migun Ltd (TLV:FBRT) recently. Coming up to the next AGM on 30th of December, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

See our latest analysis for FMS Enterprises Migun

How Does Total Compensation For Daniel Blum Compare With Other Companies In The Industry?

At the time of writing, our data shows that FMS Enterprises Migun Ltd has a market capitalization of ₪1.3b, and reported total annual CEO compensation of US$868k for the year to December 2023. We note that's an increase of 45% above last year. Notably, the salary which is US$703.0k, represents most of the total compensation being paid.

In comparison with other companies in the Israel Aerospace & Defense industry with market capitalizations ranging from ₪735m to ₪2.9b, the reported median CEO total compensation was US$750k. From this we gather that Daniel Blum is paid around the median for CEOs in the industry. Moreover, Daniel Blum also holds ₪901m worth of FMS Enterprises Migun 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	US$703k	US$600k	81%
Other	US$165k	-	19%
Total Compensation	US$868k	US$600k	100%

Talking in terms of the industry, salary represented approximately 61% of total compensation out of all the companies we analyzed, while other remuneration made up 39% of the pie. According to our research, FMS Enterprises Migun has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at FMS Enterprises Migun Ltd's Growth Numbers

Over the past three years, FMS Enterprises Migun Ltd has seen its earnings per share (EPS) grow by 29% per year. It achieved revenue growth of 44% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has FMS Enterprises Migun Ltd Been A Good Investment?

Most shareholders would probably be pleased with FMS Enterprises Migun Ltd for providing a total return of 74% 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...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for FMS Enterprises Migun that investors should look into moving forward.

Switching gears from FMS Enterprises Migun, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.