Why We Think Shareholders May Be Considering Bumping Up Bel Fuse Inc.'s (NASDAQ:BELF.A) CEO Compensation

May 08, 2024

Key Insights

Bel Fuse to hold its Annual General Meeting on 14th of May
Salary of US$600.0k is part of CEO Daniel Bernstein's total remuneration
Total compensation is 63% below industry average
Bel Fuse's EPS grew by 55% over the past three years while total shareholder return over the past three years was 345%

The impressive results at Bel Fuse Inc. (NASDAQ:BELF.A) recently will be great news for shareholders. At the upcoming AGM on 14th of May, 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 Bel Fuse

How Does Total Compensation For Daniel Bernstein Compare With Other Companies In The Industry?

Our data indicates that Bel Fuse Inc. has a market capitalization of US$792m, and total annual CEO compensation was reported as US$1.5m for the year to December 2023. That's a notable increase of 85% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$600k.

On examining similar-sized companies in the American Electronic industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$4.1m. In other words, Bel Fuse pays its CEO lower than the industry median. Furthermore, Daniel Bernstein directly owns US$30m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$600k	US$400k	39%
Other	US$929k	US$425k	61%
Total Compensation	US$1.5m	US$825k	100%

On an industry level, roughly 31% of total compensation represents salary and 69% is other remuneration. According to our research, Bel Fuse has allocated a higher percentage of pay to salary in comparison to the wider industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation — NasdaqGS:BELF.A CEO Compensation May 8th 2024

Bel Fuse Inc.'s Growth

Bel Fuse Inc. has seen its earnings per share (EPS) increase by 55% a year over the past three years. It saw its revenue drop 14% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 Bel Fuse Inc. Been A Good Investment?

Boasting a total shareholder return of 345% over three years, Bel Fuse Inc. 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...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Bel Fuse that investors should look into moving forward.

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.

Valuation is complex, but we're here to simplify it.

Discover if Bel Fuse might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.

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