We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Carmit Candy Industries Ltd.'s (TLV:CRMT) CEO For Now

Key Insights

• Carmit Candy Industries will host its Annual General Meeting on 23rd of October
• CEO ???? Cohen's total compensation includes salary of ₪1.40m
• The overall pay is 849% above the industry average
• Over the past three years, Carmit Candy Industries' EPS grew by 64% and over the past three years, the total loss to shareholders 20%

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The underwhelming share price performance of Carmit Candy Industries Ltd. (TLV:CRMT) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 23rd of October could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for Carmit Candy Industries

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

At the time of writing, our data shows that Carmit Candy Industries Ltd. has a market capitalization of ₪64m, and reported total annual CEO compensation of ₪1.7m for the year to December 2024. That is, the compensation was roughly the same as last year. In particular, the salary of ₪1.40m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Israel Food industry with market capitalizations below ₪663m, reported a median total CEO compensation of ₪181k. Accordingly, our analysis reveals that Carmit Candy Industries Ltd. pays ???? Cohen north of the industry median.

On an industry level, roughly 83% of total compensation represents salary and 17% is other remuneration. There isn't a significant difference between Carmit Candy Industries and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Carmit Candy Industries Ltd.'s Growth

Carmit Candy Industries Ltd.'s earnings per share (EPS) grew 64% per year over the last three years. Its revenue is up 28% 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. 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 Carmit Candy Industries Ltd. Been A Good Investment?

Given the total shareholder loss of 20% over three years, many shareholders in Carmit Candy Industries Ltd. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. 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.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 3 warning signs for Carmit Candy Industries you should be aware of, and 2 of them shouldn't be ignored.

Switching gears from Carmit Candy Industries, 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.