It's Unlikely That The CEO Of Cipia Vision Ltd (TLV:CPIA) Will See A Huge Pay Rise This Year

Key Insights

• Cipia Vision will host its Annual General Meeting on 23rd of October
• CEO Yehuda Holtzman's total compensation includes salary of US$270.0k
• Total compensation is similar to the industry average
• Cipia Vision's three-year loss to shareholders was 91% while its EPS grew by 31% over the past three years

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In the past three years, the share price of Cipia Vision Ltd (TLV:CPIA) has struggled to grow and now shareholders are sitting on a loss. 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 October. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for Cipia Vision

Comparing Cipia Vision Ltd's CEO Compensation With The Industry

At the time of writing, our data shows that Cipia Vision Ltd has a market capitalization of ₪14m, and reported total annual CEO compensation of US$330k for the year to December 2024. That's a notable decrease of 14% on last year. Notably, the salary which is US$270.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Israel Software industry with market capitalizations below ₪663m, we found that the median total CEO compensation was US$384k. This suggests that Cipia Vision remunerates its CEO largely in line with the industry average.

Talking in terms of the industry, salary represented approximately 79% of total compensation out of all the companies we analyzed, while other remuneration made up 21% of the pie. Cipia Vision is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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.

Cipia Vision Ltd's Growth

Cipia Vision Ltd has seen its earnings per share (EPS) increase by 31% a year over the past three years. In the last year, its revenue is up 62%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Cipia Vision Ltd Been A Good Investment?

The return of -91% over three years would not have pleased Cipia Vision Ltd shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

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 be keen to know what's holding the stock back when earnings have grown. 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 did our research and identified 3 warning signs (and 2 which are concerning) in Cipia Vision we think you should know about.

Important note: Cipia Vision is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.