Advertisement
- United States
- /
- Electronic Equipment and Components
- /
- NasdaqGM:SNT
Shareholders May Not Be So Generous With Magal Security Systems Ltd.'s (NASDAQ:MAGS) CEO Compensation And Here's Why
Performance at Magal Security Systems Ltd. (NASDAQ:MAGS) has been reasonably good and CEO Dror Sharon has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 15 August 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.
View our latest analysis for Magal Security Systems
Comparing Magal Security Systems Ltd.'s CEO Compensation With the industry
Our data indicates that Magal Security Systems Ltd. has a market capitalization of US$104m, and total annual CEO compensation was reported as US$826k for the year to December 2020. That's a slight decrease of 7.5% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$316k.
For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$436k. Hence, we can conclude that Dror Sharon is remunerated higher than the industry median.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$316k | US$297k | 38% |
| Other | US$510k | US$596k | 62% |
| Total Compensation | US$826k | US$893k | 100% |
On an industry level, around 29% of total compensation represents salary and 71% is other remuneration. It's interesting to note that Magal Security Systems pays out a greater portion of remuneration through salary, compared to the industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Magal Security Systems Ltd.'s Growth Numbers
Magal Security Systems Ltd. has seen its earnings per share (EPS) increase by 7.7% a year over the past three years. In the last year, its revenue is down 3.3%.
We would argue that the lack of revenue growth in the last year is less than ideal, but the modest improvement in EPS is good. 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. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Magal Security Systems Ltd. Been A Good Investment?
Magal Security Systems Ltd. has generated a total shareholder return of 4.8% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.
In Summary...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Magal Security Systems.
Important note: Magal Security Systems is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
When trading Magal Security Systems or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted
New: Manage All Your Stock Portfolios in One Place
We've created the ultimate portfolio companion for stock investors, and it's free.
• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks
This article by Simply Wall St is general in nature. 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
About NasdaqGM:SNT
Senstar Technologies
Provides physical, video, and access control security products and solutions worldwide.
Flawless balance sheet with solid track record.
Market Insights
Advertisement
Weekly Picks
WO
woodworthfund on MGP Ingredients ·
THE KINGDOM OF BROWN GOODS: WHY MGPI IS BEING CRUSHED BY INVENTORY & PRIMED FOR RESURRECTION
Fair Value:US$4034.1% undervalued
18 followersusers have followed this narrative
1 commentusers have commented on this narrative
4 likesusers have liked this narrative
DO
Double_Bubbler on Vertical Aerospace ·
Why Vertical Aerospace (NYSE: EVTL) is Worth Possibly Over 13x its Current Price
Fair Value:US$6090.0% undervalued
21 followersusers have followed this narrative
2 commentsusers have commented on this narrative
17 likesusers have liked this narrative
TI
TickerTickle on Oracle ·
The Quiet Giant That Became AI’s Power Grid
Fair Value:US$389.8142.8% undervalued
41 followersusers have followed this narrative
3 commentsusers have commented on this narrative
8 likesusers have liked this narrative
Recently Updated Narratives
MH
mhbb on Mastersystem Infotama ·
Mastersystem Infotama will achieve 18.9% revenue growth as fair value hits IDR1,650
Fair Value:Rp1.63k13.8% undervalued
1 followerusers have followed this narrative
0 commentsusers have commented on this narrative
0 likesusers have liked this narrative
RO
Robbo on Procter & Gamble ·
Insiders Sell, Investors Watch: What’s Going On at PG?
Fair Value:US$1506.8% undervalued
1 followerusers have followed this narrative
0 commentsusers have commented on this narrative
0 likesusers have liked this narrative
CW
Cwburton on Verano Holdings ·
Waiting for the Inevitable
Fair Value:CA$5.5278.8% undervalued
2 followersusers have followed this narrative
0 commentsusers have commented on this narrative
0 likesusers have liked this narrative
Popular Narratives
TH
TheWallstreetKing on MicroVision ·
MicroVision will explode future revenue by 380.37% with a vision towards success
Fair Value:US$6098.5% undervalued
119 followersusers have followed this narrative
11 commentsusers have commented on this narrative
22 likesusers have liked this narrative
AN
AnalystConsensusTarget on NVIDIA ·
NVDA: Expanding AI Demand Will Drive Major Data Center Investments Through 2026
Fair Value:US$250.3926.6% undervalued
962 followersusers have followed this narrative
6 commentsusers have commented on this narrative
25 likesusers have liked this narrative
RO
RockeTeller on Santacruz Silver Mining ·
Crazy Undervalued 42 Baggers Silver Play (Active & Running Mine)
Fair Value:CA$8684.3% undervalued
77 followersusers have followed this narrative
8 commentsusers have commented on this narrative
21 likesusers have liked this narrative
Trending Discussion
WA
Wane_Investment_House on FCMB Group ·
This aligns FCMB with global green finance standards and strengthens its attractiveness to impact investors. 4. Deepens Strategic Partnerships and International Collaboration The collaboration with FMO and HeaveVentures broadens FCMB’s relationship with: Development finance institutions (DFIs), Venture capital and innovation hubs, Global agri-value chain partners. These partnerships provide FCMB with: Access to co-financing opportunities, Technical expertise, Future pipeline collaboration, which collectively expands FCMB’s capacity to support complex and scalable agribusiness projects. 5. Builds a Pipeline for Future Lending, Investment, and Market Expansion The Hackathon serves as a feeder mechanism into FCMB’s broader agribusiness strategy by: Identifying innovative startups that can evolve into long-term borrowers or partners. Creating opportunities for structured financing, contract farming solutions, and supply-chain digitization. Enhancing FCMB’s advisory and merchant banking relevance in the agritech investment landscape. This creates a sustainable pipeline of bankable opportunities in a sector with high long-term growth potential. 6. Strengthens FCMB’s Brand Positioning and Competitive Advantage The initiative differentiates FCMB from peer institutions by: Showcasing its commitment to innovation-led economic transformation. Demonstrating leadership in supporting Nigeria’s food security agenda. Reinforcing customer loyalty in the SME and agribusiness segments. This positions FCMB as a future-ready financial partner with strong sectoral expertise and deep development impact. Strategic Outlook The FCMB AgriTech Hackathon 2025 is expected to deliver medium-to-long-term value by: Deepening FCMB’s market share in agribusiness finance, Enabling new digital lending frameworks, Strengthening ESG positioning, Expanding cross-border innovation partnerships, Supporting scalable agritech solutions capable of transforming Nigeria’s food system.
0
|0