There Could Be A Chance Cellebrite DI Ltd.'s (NASDAQ:CLBT) CEO Will Have Their Compensation Increased

Key Insights

• Cellebrite DI's Annual General Meeting to take place on 17th of September
• Total pay for CEO Yossi Carmil includes US$477.0k salary
• The total compensation is 71% less than the average for the industry
• Over the past three years, Cellebrite DI's EPS fell by 79% and over the past three years, the total shareholder return was 59%

The decent performance at Cellebrite DI Ltd. (NASDAQ:CLBT) recently will please most shareholders as they go into the AGM coming up on 17th of September. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

View our latest analysis for Cellebrite DI

Comparing Cellebrite DI Ltd.'s CEO Compensation With The Industry

According to our data, Cellebrite DI Ltd. has a market capitalization of US$3.4b, and paid its CEO total annual compensation worth US$2.1m over the year to December 2023. That's a modest increase of 6.9% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$477k.

On examining similar-sized companies in the American Software 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$7.5m. In other words, Cellebrite DI pays its CEO lower than the industry median. What's more, Yossi Carmil holds US$81m 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$477k	US$490k	22%
Other	US$1.7m	US$1.5m	78%
Total Compensation	US$2.1m	US$2.0m	100%

On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. Cellebrite DI pays out 22% 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.

A Look at Cellebrite DI Ltd.'s Growth Numbers

Over the last three years, Cellebrite DI Ltd. has shrunk its earnings per share by 79% per year. It achieved revenue growth of 23% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Cellebrite DI Ltd. Been A Good Investment?

Boasting a total shareholder return of 59% over three years, Cellebrite DI 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.

In Summary...

While the company seems to be headed in the right direction performance-wise, there's always room for improvement. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Cellebrite DI that investors should look into moving forward.

Switching gears from Cellebrite DI, 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.

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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.