Here's Why Camtek Ltd.'s (NASDAQ:CAMT) CEO May Deserve A Raise

Key Insights

• Camtek's Annual General Meeting to take place on 21st of December
• CEO Rafi Amit's total compensation includes salary of US$313.1k
• The total compensation is 74% less than the average for the industry
• Camtek's total shareholder return over the past three years was 214% while its EPS grew by 54% over the past three years

The impressive results at Camtek Ltd. (NASDAQ:CAMT) recently will be great news for shareholders. At the upcoming AGM on 21st of December, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

View our latest analysis for Camtek

Comparing Camtek Ltd.'s CEO Compensation With The Industry

Our data indicates that Camtek Ltd. has a market capitalization of US$2.9b, and total annual CEO compensation was reported as US$1.8m for the year to December 2022. Notably, that's an increase of 20% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$313k.

On examining similar-sized companies in the American Semiconductor industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$6.9m. This suggests that Rafi Amit is paid below the industry median. Furthermore, Rafi Amit directly owns US$160k worth of shares in the company.

Component	2022	2021	Proportion (2022)
Salary	US$313k	US$313k	17%
Other	US$1.5m	US$1.2m	83%
Total Compensation	US$1.8m	US$1.5m	100%

Speaking on an industry level, nearly 12% of total compensation represents salary, while the remainder of 88% is other remuneration. Camtek pays out 17% of remuneration in the form of a salary, significantly higher than the industry average. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Camtek Ltd.'s Growth

Camtek Ltd.'s earnings per share (EPS) grew 54% per year over the last three years. In the last year, its revenue is down 1.3%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Camtek Ltd. Been A Good Investment?

Boasting a total shareholder return of 214% over three years, Camtek Ltd. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

So you may want to check if insiders are buying Camtek shares with their own money (free access).

Switching gears from Camtek, 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.

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

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.