Shareholders Will Probably Hold Off On Increasing CI Systems (Israel) Ltd.'s (TLV:CISY) CEO Compensation For The Time Being

Key Insights

• CI Systems (Israel)'s Annual General Meeting to take place on 5th of December
• Total pay for CEO Bob Buckwald includes US$382.0k salary
• Total compensation is 69% above industry average
• CI Systems (Israel)'s EPS grew by 16% over the past three years while total shareholder return over the past three years was 100%

Under the guidance of CEO Bob Buckwald, CI Systems (Israel) Ltd. (TLV:CISY) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 5th of December. However, some shareholders will still be cautious of paying the CEO excessively.

See 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 ₪155m, and total annual CEO compensation was reported as US$471k for the year to December 2023. That's a notable increase of 49% on last year. Notably, the salary which is US$382.0k, represents most of the total compensation being paid.

In comparison with other companies in the Israel Semiconductor industry with market capitalizations under ₪731m, the reported median total CEO compensation was US$278k. Hence, we can conclude that Bob Buckwald is remunerated higher than the industry median. Furthermore, Bob Buckwald directly owns ₪2.4m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2021	Proportion (2023)
Salary	US$382k	US$317k	81%
Other	US$89k	-	19%
Total Compensation	US$471k	US$317k	100%

On an industry level, around 65% of total compensation represents salary and 35% is other remuneration. CI Systems (Israel) is paying a higher share of its remuneration through a salary in comparison to the overall industry. 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 CI Systems (Israel) Ltd.'s Growth Numbers

Over the past three years, CI Systems (Israel) Ltd. has seen its earnings per share (EPS) grow by 16% per year. It saw its revenue drop 15% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 CI Systems (Israel) Ltd. Been A Good Investment?

We think that the total shareholder return of 100%, over three years, would leave most CI Systems (Israel) Ltd. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 3 warning signs for CI Systems (Israel) that investors should be aware of in a dynamic business environment.

Switching gears from CI Systems (Israel), 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.