Shareholders May Find It Hard To Justify Increasing IceCure Medical Ltd's (NASDAQ:ICCM) CEO Compensation For Now
Key Insights
- IceCure Medical to hold its Annual General Meeting on 20th of August
- Total pay for CEO Eyal Shamir includes US$443.1k salary
- Total compensation is similar to the industry average
- IceCure Medical's three-year loss to shareholders was 54% while its EPS grew by 17% over the past three years
Shareholders of IceCure Medical Ltd (NASDAQ:ICCM) 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. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 20th of August. 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 IceCure Medical
Comparing IceCure Medical Ltd's CEO Compensation With The Industry
At the time of writing, our data shows that IceCure Medical Ltd has a market capitalization of US$64m, and reported total annual CEO compensation of US$513k for the year to December 2024. That's slightly lower by 7.3% over the previous year. Notably, the salary which is US$443.1k, represents most of the total compensation being paid.
For comparison, other companies in the American Medical Equipment industry with market capitalizations below US$200m, reported a median total CEO compensation of US$570k. So it looks like IceCure Medical compensates Eyal Shamir in line with the median for the industry. Furthermore, Eyal Shamir directly owns US$496k worth of shares in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$443k | US$416k | 86% |
| Other | US$70k | US$137k | 14% |
| Total Compensation | US$513k | US$553k | 100% |
Talking in terms of the industry, salary represented approximately 26% of total compensation out of all the companies we analyzed, while other remuneration made up 74% of the pie. According to our research, IceCure Medical has allocated a higher percentage of pay to salary in comparison to the wider industry. 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.
IceCure Medical Ltd's Growth
Over the past three years, IceCure Medical Ltd has seen its earnings per share (EPS) grow by 17% per year. Revenue was pretty flat on last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has IceCure Medical Ltd Been A Good Investment?
Few IceCure Medical Ltd shareholders would feel satisfied with the return of -54% over three years. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for IceCure Medical (1 is significant!) that you should be aware of before investing here.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.