Here's Why Shareholders May Want To Be Cautious With Increasing Upsellon Brands Holdings Ltd's (TLV:UPSL) CEO Pay Packet

Key Insights

• Upsellon Brands Holdings will host its Annual General Meeting on 6th of October
• Salary of US$166.0k is part of CEO Ariel Dor's total remuneration
• Total compensation is similar to the industry average
• Upsellon Brands Holdings' three-year loss to shareholders was 84% while its EPS grew by 86% over the past three years

Shareholders of Upsellon Brands Holdings Ltd (TLV:UPSL) will have been dismayed by the negative share price return over the last three years. 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 6th of October 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. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Upsellon Brands Holdings

How Does Total Compensation For Ariel Dor Compare With Other Companies In The Industry?

Our data indicates that Upsellon Brands Holdings Ltd has a market capitalization of ₪29m, and total annual CEO compensation was reported as US$166k for the year to December 2023. That is, the compensation was roughly the same as last year. Notably, the salary of US$166k is the entirety of the CEO compensation.

On comparing similar-sized companies in the Israel Oil and Gas industry with market capitalizations below ₪746m, we found that the median total CEO compensation was US$172k. From this we gather that Ariel Dor is paid around the median for CEOs in the industry. What's more, Ariel Dor holds ₪1.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$166k	US$171k	100%
Other	-	-	-
Total Compensation	US$166k	US$171k	100%

On an industry level, roughly 46% of total compensation represents salary and 54% is other remuneration. At the company level, Upsellon Brands Holdings pays Ariel Dor solely through a salary, preferring to go down a conventional route. 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.

Upsellon Brands Holdings Ltd's Growth

Upsellon Brands Holdings Ltd's earnings per share (EPS) grew 86% per year over the last three years. Its revenue is down 8.5% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Upsellon Brands Holdings Ltd Been A Good Investment?

With a total shareholder return of -84% over three years, Upsellon Brands Holdings Ltd shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Upsellon Brands Holdings pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for Upsellon Brands Holdings that investors should be aware of in a dynamic business environment.

Switching gears from Upsellon Brands Holdings, 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.