Shareholders Will Probably Hold Off On Increasing FMS Enterprises Migun Ltd's (TLV:FBRT) CEO Compensation For The Time Being

Key Insights

• FMS Enterprises Migun will host its Annual General Meeting on 30th of September
• Total pay for CEO Daniel Blum includes US$608.0k salary
• The total compensation is 460% higher than the average for the industry
• Over the past three years, FMS Enterprises Migun's EPS grew by 25% and over the past three years, the total shareholder return was 98%

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Performance at FMS Enterprises Migun Ltd (TLV:FBRT) has been reasonably good and CEO Daniel Blum has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 30th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for FMS Enterprises Migun

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

Our data indicates that FMS Enterprises Migun Ltd has a market capitalization of ₪1.7b, and total annual CEO compensation was reported as US$772k for the year to December 2024. That's a notable decrease of 11% on last year. Notably, the salary which is US$608.0k, represents most of the total compensation being paid.

On examining similar-sized companies in the Israel Aerospace & Defense industry with market capitalizations between ₪670m and ₪2.7b, we discovered that the median CEO total compensation of that group was US$138k. Accordingly, our analysis reveals that FMS Enterprises Migun Ltd pays Daniel Blum north of the industry median. Furthermore, Daniel Blum directly owns ₪1.2b worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 56% of total compensation represents salary and 44% is other remuneration. It's interesting to note that FMS Enterprises Migun pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at FMS Enterprises Migun Ltd's Growth Numbers

FMS Enterprises Migun Ltd has seen its earnings per share (EPS) increase by 25% a year over the past three years. Its revenue is down 3.1% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has FMS Enterprises Migun Ltd Been A Good Investment?

We think that the total shareholder return of 98%, over three years, would leave most FMS Enterprises Migun Ltd shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for FMS Enterprises Migun (of which 1 is significant!) that you should know about in order to have a holistic understanding of the stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.