Nasdaq
华尔街日报We Think RoboGroup T.E.K. Ltd.'s (TLV:ROBO) CEO Compensation Package Needs To Be Put Under A Microscope
Key Insights
- RoboGroup T.E.K's Annual General Meeting to take place on 15th of December
- Total pay for CEO Yoram Deutsch includes US$325.0k salary
- The total compensation is similar to the average for the industry
- RoboGroup T.E.K's EPS declined by 23% over the past three years while total shareholder loss over the past three years was 37%
Shareholders will probably not be too impressed with the underwhelming results at RoboGroup T.E.K. Ltd. (TLV:ROBO) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 15th of December. 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 RoboGroup T.E.K
How Does Total Compensation For Yoram Deutsch Compare With Other Companies In The Industry?
At the time of writing, our data shows that RoboGroup T.E.K. Ltd. has a market capitalization of ₪39m, and reported total annual CEO compensation of US$396k for the year to December 2024. Notably, that's an increase of 30% over the year before. Notably, the salary which is US$325.0k, represents most of the total compensation being paid.
In comparison with other companies in the Israel Machinery industry with market capitalizations under ₪645m, the reported median total CEO compensation was US$340k. So it looks like RoboGroup T.E.K compensates Yoram Deutsch in line with the median for the industry.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$325k | US$292k | 82% |
| Other | US$71k | US$12k | 18% |
| Total Compensation | US$396k | US$304k | 100% |
On an industry level, roughly 79% of total compensation represents salary and 21% is other remuneration. Although there is a difference in how total compensation is set, RoboGroup T.E.K more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
RoboGroup T.E.K. Ltd.'s Growth
RoboGroup T.E.K. Ltd. has reduced its earnings per share by 23% a year over the last three years. It saw its revenue drop 17% over the last year.
The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 RoboGroup T.E.K. Ltd. Been A Good Investment?
The return of -37% over three years would not have pleased RoboGroup T.E.K. Ltd. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for RoboGroup T.E.K (2 shouldn't be ignored!) that you should be aware of before investing here.
Important note: RoboGroup T.E.K 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.