Increases to NextVision Stabilized Systems, Ltd.'s (TLV:NXSN) CEO Compensation Might Cool off for now

Key Insights

• NextVision Stabilized Systems will host its Annual General Meeting on 21st of August
• Total pay for CEO Michael Grosman includes US$593.9k salary
• The overall pay is 839% above the industry average
• NextVision Stabilized Systems' total shareholder return over the past three years was 1,435% while its EPS grew by 123% over the past three years

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CEO Michael Grosman has done a decent job of delivering relatively good performance at NextVision Stabilized Systems, Ltd. (TLV:NXSN) 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 21st of August. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for NextVision Stabilized Systems

Comparing NextVision Stabilized Systems, Ltd.'s CEO Compensation With The Industry

Our data indicates that NextVision Stabilized Systems, Ltd. has a market capitalization of ₪10b, and total annual CEO compensation was reported as US$2.6m for the year to December 2024. That's a notable increase of 52% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$594k.

On comparing similar companies from the Israel Electronic industry with market caps ranging from ₪6.8b to ₪22b, we found that the median CEO total compensation was US$279k. Hence, we can conclude that Michael Grosman is remunerated higher than the industry median. What's more, Michael Grosman holds ₪104m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 52% of total compensation represents salary, while the remainder of 48% is other remuneration. In NextVision Stabilized Systems' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

NextVision Stabilized Systems, Ltd.'s Growth

NextVision Stabilized Systems, Ltd.'s earnings per share (EPS) grew 123% per year over the last three years. In the last year, its revenue is up 54%.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 NextVision Stabilized Systems, Ltd. Been A Good Investment?

We think that the total shareholder return of 1,435%, over three years, would leave most NextVision Stabilized Systems, Ltd. shareholders smiling. 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...

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, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for NextVision Stabilized Systems (1 can't be ignored!) that you should be aware of before investing here.

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.