Increases to CEO Compensation Might Be Put On Hold For Now at CI Systems (Israel) Ltd. (TLV:CISY)

Key Insights

• CI Systems (Israel) to hold its Annual General Meeting on 4th of December
• CEO Bob Buckwald's total compensation includes salary of US$330.0k
• Total compensation is 94% above industry average
• Over the past three years, CI Systems (Israel)'s EPS fell by 14% and over the past three years, the total shareholder return was 344%

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Performance at CI Systems (Israel) Ltd. (TLV:CISY) has been reasonably good and CEO Bob Buckwald has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 4th of December, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for CI Systems (Israel)

Comparing CI Systems (Israel) Ltd.'s CEO Compensation With The Industry

Our data indicates that CI Systems (Israel) Ltd. has a market capitalization of ₪492m, and total annual CEO compensation was reported as US$330k for the year to December 2024. We note that's a decrease of 30% compared to last year. Notably, the salary of US$330k is the entirety of the CEO compensation.

On comparing similar companies from the Israel Semiconductor industry with market caps ranging from ₪327m to ₪1.3b, we found that the median CEO total compensation was US$170k. Accordingly, our analysis reveals that CI Systems (Israel) Ltd. pays Bob Buckwald north of the industry median. Moreover, Bob Buckwald also holds ₪7.4m worth of CI Systems (Israel) stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 74% of total compensation represents salary and 26% is other remuneration. On a company level, CI Systems (Israel) prefers to reward its CEO through a salary, opting not to pay Bob Buckwald through non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

CI Systems (Israel) Ltd.'s Growth

Over the last three years, CI Systems (Israel) Ltd. has shrunk its earnings per share by 14% per year. In the last year, its revenue is up 17%.

The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. 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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has CI Systems (Israel) Ltd. Been A Good Investment?

Most shareholders would probably be pleased with CI Systems (Israel) Ltd. for providing a total return of 344% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

CI Systems (Israel) pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Some shareholders will be pleased by the relatively good results, however, the results could still be improved. EPS growth is still weak, and until that picks up, shareholders may find it hard to approve a pay rise for the CEO, since they are already paid above the average in their industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 3 warning signs for CI Systems (Israel) (of which 2 are significant!) that you should know about in order to have a holistic understanding of the stock.

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.