Most Shareholders Will Probably Find That The CEO Compensation For Photomyne Ltd (TLV:PHTM) Is Reasonable

Key Insights

• Photomyne will host its Annual General Meeting on 28th of September
• Salary of US$262.0k is part of CEO Nir Tzemah's total remuneration
• The total compensation is similar to the average for the industry
• Photomyne's EPS declined by 26% over the past three years while total shareholder return over the past three years was 33%

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Under the guidance of CEO Nir Tzemah, Photomyne Ltd (TLV:PHTM) has performed reasonably well recently. As shareholders go into the upcoming AGM on 28th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.

View our latest analysis for Photomyne

Comparing Photomyne Ltd's CEO Compensation With The Industry

At the time of writing, our data shows that Photomyne Ltd has a market capitalization of ₪59m, and reported total annual CEO compensation of US$312k for the year to December 2024. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at US$262.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Israel Software industry with market capitalizations below ₪667m, reported a median total CEO compensation of US$383k. This suggests that Photomyne remunerates its CEO largely in line with the industry average. Furthermore, Nir Tzemah directly owns ₪6.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 79% of total compensation represents salary, while the remainder of 21% is other remuneration. Although there is a difference in how total compensation is set, Photomyne more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Photomyne Ltd's Growth

Photomyne Ltd has reduced its earnings per share by 26% a year over the last three years. It achieved revenue growth of 17% over the last year.

Investors would be a bit wary of companies that have lower EPS 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. 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 Photomyne Ltd Been A Good Investment?

Most shareholders would probably be pleased with Photomyne Ltd for providing a total return of 33% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Although the company has performed relatively well, we still think there are some areas that could be improved. We reckon that there are some shareholders who may be hesitant to increase CEO pay further until EPS growth starts to improve, despite the robust revenue growth.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Photomyne that investors should think about before committing capital to this stock.

Switching gears from Photomyne, 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.