Caesarstone Ltd.'s (NASDAQ:CSTE) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Caesarstone will host its Annual General Meeting on 19th of November
• Total pay for CEO Yos Shiran includes US$950.3k salary
• The total compensation is 122% higher than the average for the industry
• Over the past three years, Caesarstone's EPS fell by 17% and over the past three years, the total loss to shareholders 85%

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Caesarstone Ltd. (NASDAQ:CSTE) has not performed well recently and CEO Yos Shiran will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 19th of November. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for Caesarstone

How Does Total Compensation For Yos Shiran Compare With Other Companies In The Industry?

Our data indicates that Caesarstone Ltd. has a market capitalization of US$34m, and total annual CEO compensation was reported as US$2.2m for the year to December 2024. Notably, that's an increase of 25% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$950k.

For comparison, other companies in the American Building industry with market capitalizations below US$200m, reported a median total CEO compensation of US$987k. This suggests that Yos Shiran is paid more than the median for the industry. Furthermore, Yos Shiran directly owns US$587k worth of shares in the company.

Component	2024	2023	Proportion (2024)
Salary	US$950k	US$782k	43%
Other	US$1.2m	US$973k	57%
Total Compensation	US$2.2m	US$1.8m	100%

On an industry level, roughly 16% of total compensation represents salary and 84% is other remuneration. Caesarstone pays out 43% 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.

A Look at Caesarstone Ltd.'s Growth Numbers

Caesarstone Ltd. has reduced its earnings per share by 17% a year over the last three years. It saw its revenue drop 20% over the last year.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Caesarstone Ltd. Been A Good Investment?

The return of -85% over three years would not have pleased Caesarstone Ltd. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for Caesarstone (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

Important note: Caesarstone 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.

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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.