We Think Shareholders May Want To Consider A Review Of Vishay Precision Group, Inc.'s (NYSE:VPG) CEO Compensation Package

Key Insights

• Vishay Precision Group will host its Annual General Meeting on 21st of May
• Total pay for CEO Ziv Shoshani includes US$678.6k salary
• The overall pay is comparable to the industry average
• Over the past three years, Vishay Precision Group's EPS fell by 47% and over the past three years, the total loss to shareholders 17%

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Vishay Precision Group, Inc. (NYSE:VPG) has not performed well recently and CEO Ziv Shoshani will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 21st of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Vishay Precision Group

Comparing Vishay Precision Group, Inc.'s CEO Compensation With The Industry

According to our data, Vishay Precision Group, Inc. has a market capitalization of US$350m, and paid its CEO total annual compensation worth US$2.1m over the year to December 2024. That's a notable decrease of 9.5% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$679k.

On comparing similar companies from the American Electronic industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$2.0m. So it looks like Vishay Precision Group compensates Ziv Shoshani in line with the median for the industry. What's more, Ziv Shoshani holds US$6.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 23% of total compensation represents salary and 77% is other remuneration. Vishay Precision Group pays out 32% of remuneration in the form of a salary, significantly higher than the industry average. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Vishay Precision Group, Inc.'s Growth

Over the last three years, Vishay Precision Group, Inc. has shrunk its earnings per share by 47% per year. In the last year, its revenue is down 14%.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Vishay Precision Group, Inc. Been A Good Investment?

Since shareholders would have lost about 17% over three years, some Vishay Precision Group, Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Vishay Precision Group that investors should think about before committing capital to this stock.

Switching gears from Vishay Precision Group, 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.