Yahoo Finance Here's Why It's Unlikely That IceCure Medical Ltd's (NASDAQ:ICCM) CEO Will See A Pay Rise This Year
Key Insights
IceCure Medical to hold its Annual General Meeting on 20th of May
CEO Eyal Shamir's total compensation includes salary of US$416.4k
The total compensation is similar to the average for the industry
Over the past three years, IceCure Medical's EPS fell by 14% and over the past three years, the total loss to shareholders 29%
The results at IceCure Medical Ltd (NASDAQ:ICCM) have been quite disappointing recently and CEO Eyal Shamir bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 20th 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. The data we present below explains why we think CEO compensation is not consistent with recent performance.
Check out our latest analysis for IceCure Medical
Comparing IceCure Medical Ltd's CEO Compensation With The Industry
At the time of writing, our data shows that IceCure Medical Ltd has a market capitalization of US$53m, and reported total annual CEO compensation of US$553k for the year to December 2023. That's a notable decrease of 16% on last year. Notably, the salary which is US$416.4k, represents most of the total compensation being paid.
In comparison with other companies in the American Medical Equipment industry with market capitalizations under US$200m, the reported median total CEO compensation was US$658k. From this we gather that Eyal Shamir is paid around the median for CEOs in the industry. Furthermore, Eyal Shamir directly owns US$604k worth of shares in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$416k | US$467k | 75% |
Other | US$137k | US$191k | 25% |
Total Compensation | US$553k | US$658k | 100% |
Talking in terms of the industry, salary represented approximately 26% of total compensation out of all the companies we analyzed, while other remuneration made up 74% of the pie. IceCure Medical is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
IceCure Medical Ltd's Growth
Over the last three years, IceCure Medical Ltd has shrunk its earnings per share by 14% per year. In the last year, its revenue is up 4.7%.
Few shareholders would be pleased to read that EPS have declined. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has IceCure Medical Ltd Been A Good Investment?
Given the total shareholder loss of 29% over three years, many shareholders in IceCure Medical Ltd are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
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 3 warning signs for IceCure Medical that you should be aware of before investing.
Important note: IceCure Medical 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.
