We Think Some Shareholders May Hesitate To Increase Sadot Group Inc.'s (NASDAQ:SDOT) CEO Compensation

Key Insights

• Sadot Group to hold its Annual General Meeting on 18th of December
• Total pay for CEO Mike Roper includes US$350.0k salary
• The overall pay is 105% above the industry average
• Sadot Group's EPS grew by 53% over the past three years while total shareholder loss over the past three years was 63%

Shareholders of Sadot Group Inc. (NASDAQ:SDOT) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 18th of December could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Sadot Group

Comparing Sadot Group Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Sadot Group Inc. has a market capitalization of US$23m, and reported total annual CEO compensation of US$782k for the year to December 2023. Notably, that's an increase of 42% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$350k.

For comparison, other companies in the American Food industry with market capitalizations below US$200m, reported a median total CEO compensation of US$381k. This suggests that Mike Roper is paid more than the median for the industry. Furthermore, Mike Roper directly owns US$427k worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	US$350k	US$350k	45%
Other	US$432k	US$199k	55%
Total Compensation	US$782k	US$549k	100%

On an industry level, roughly 19% of total compensation represents salary and 81% is other remuneration. Sadot Group is paying a higher share of its remuneration through a 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.

A Look at Sadot Group Inc.'s Growth Numbers

Over the past three years, Sadot Group Inc. has seen its earnings per share (EPS) grow by 53% per year. In the last year, its revenue is down 7.4%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Sadot Group Inc. Been A Good Investment?

With a total shareholder return of -63% over three years, Sadot Group Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

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. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

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 4 warning signs (and 1 which is a bit unpleasant) in Sadot Group we think you should know about.

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.