Increases to Imagesat International (I.S.I) Ltd's (TLV:ISI) CEO Compensation Might Cool off for now

Key Insights

• Imagesat International (I.S.I) to hold its Annual General Meeting on 16th of December
• Total pay for CEO Noam Segal includes US$397.0k salary
• Total compensation is 336% above industry average
• Over the past three years, Imagesat International (I.S.I)'s EPS fell by 100% and over the past three years, the total loss to shareholders 2.2%

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As many shareholders of Imagesat International (I.S.I) Ltd (TLV:ISI) will be aware, they have not made a gain on their investment in the past three years. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 16th of December, where they can impact on future company performance by voting on resolutions, including executive compensation. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

View our latest analysis for Imagesat International (I.S.I)

How Does Total Compensation For Noam Segal Compare With Other Companies In The Industry?

According to our data, Imagesat International (I.S.I) Ltd has a market capitalization of ₪622m, and paid its CEO total annual compensation worth US$715k over the year to December 2024. Notably, that's a decrease of 14% over the year before. Notably, the salary which is US$397.0k, represents a considerable chunk of the total compensation being paid.

On examining similar-sized companies in the Israel Aerospace & Defense industry with market capitalizations between ₪323m and ₪1.3b, we discovered that the median CEO total compensation of that group was US$164k. Hence, we can conclude that Noam Segal is remunerated higher than the industry median.

On an industry level, around 56% of total compensation represents salary and 44% is other remuneration. There isn't a significant difference between Imagesat International (I.S.I) and the broader market, in terms of salary allocation in the overall compensation package. 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 Imagesat International (I.S.I) Ltd's Growth Numbers

Over the last three years, Imagesat International (I.S.I) Ltd has shrunk its earnings per share by 100% per year. In the last year, its revenue is up 24%.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. 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. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Imagesat International (I.S.I) Ltd Been A Good Investment?

Since shareholders would have lost about 2.2% over three years, some Imagesat International (I.S.I) Ltd investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. 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.

Whatever your view on compensation, you might want to check if insiders are buying or selling Imagesat International (I.S.I) shares (free trial).

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.