We Think Some Shareholders May Hesitate To Increase Can-Fite BioPharma Ltd.'s (TLV:CANF) CEO Compensation

Key Insights

• Can-Fite BioPharma's Annual General Meeting to take place on 23rd of June
• CEO Motti Farbstein's total compensation includes salary of US$349.0k
• The overall pay is 72% above the industry average
• Over the past three years, Can-Fite BioPharma's EPS grew by 67% and over the past three years, the total loss to shareholders 87%

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Shareholders of Can-Fite BioPharma Ltd. (TLV:CANF) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 23rd of June. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Can-Fite BioPharma

Comparing Can-Fite BioPharma Ltd.'s CEO Compensation With The Industry

Our data indicates that Can-Fite BioPharma Ltd. has a market capitalization of ₪50m, and total annual CEO compensation was reported as US$558k for the year to December 2024. We note that's an increase of 19% above last year. Notably, the salary which is US$349.0k, represents most of the total compensation being paid.

In comparison with other companies in the Israel Biotechs industry with market capitalizations under ₪700m, the reported median total CEO compensation was US$324k. This suggests that Motti Farbstein is paid more than the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	US$349k	US$310k	63%
Other	US$209k	US$157k	37%
Total Compensation	US$558k	US$467k	100%

Talking in terms of the industry, salary represented approximately 64% of total compensation out of all the companies we analyzed, while other remuneration made up 36% of the pie. Although there is a difference in how total compensation is set, Can-Fite BioPharma more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Can-Fite BioPharma Ltd.'s Growth Numbers

Can-Fite BioPharma Ltd. has seen its earnings per share (EPS) increase by 67% a year over the past three years. Its revenue is down 9.3% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Can-Fite BioPharma Ltd. Been A Good Investment?

With a total shareholder return of -87% over three years, Can-Fite BioPharma 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...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. 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. We identified 4 warning signs for Can-Fite BioPharma (3 are significant!) that you should be aware of before investing here.

Switching gears from Can-Fite BioPharma, 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.