Shareholders May Not Be So Generous With NextVision Stabilized Systems, Ltd.'s (TLV:NXSN) CEO Compensation And Here's Why

Key Insights

• NextVision Stabilized Systems' Annual General Meeting to take place on 24th of June
• Total pay for CEO Michael Grosman includes US$498.0k salary
• Total compensation is 1,154% above industry average
• Over the past three years, NextVision Stabilized Systems' EPS grew by 97% and over the past three years, the total shareholder return was 815%

Under the guidance of CEO Michael Grosman, NextVision Stabilized Systems, Ltd. (TLV:NXSN) 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 24th of June. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for NextVision Stabilized Systems

How Does Total Compensation For Michael Grosman Compare With Other Companies In The Industry?

Our data indicates that NextVision Stabilized Systems, Ltd. has a market capitalization of ₪4.2b, and total annual CEO compensation was reported as US$1.7m for the year to December 2023. We note that's an increase of 78% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$498k.

On examining similar-sized companies in the Israel Electronic industry with market capitalizations between ₪1.5b and ₪5.9b, we discovered that the median CEO total compensation of that group was US$137k. This suggests that Michael Grosman is paid more than the median for the industry. What's more, Michael Grosman holds ₪53m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$498k	US$341k	29%
Other	US$1.2m	US$629k	71%
Total Compensation	US$1.7m	US$970k	100%

On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. NextVision Stabilized Systems sets aside a smaller share of compensation for salary, in comparison to the overall 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. has seen its earnings per share (EPS) increase by 97% a year over the past three years. It achieved revenue growth of 138% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 NextVision Stabilized Systems, Ltd. Been A Good Investment?

Most shareholders would probably be pleased with NextVision Stabilized Systems, Ltd. for providing a total return of 815% 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...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for NextVision Stabilized Systems (1 is concerning!) that you should be aware of before investing here.

Important note: NextVision Stabilized Systems 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com