Yuval Dagim is the CEO of Caesarstone Ltd. (NASDAQ:CSTE). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Yuval Dagim's Compensation Compare With Similar Sized Companies?
Our data indicates that Caesarstone Ltd. is worth US$523m, and total annual CEO compensation was reported as US$920k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$658k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.7m.
A first glance this seems like a real positive for shareholders, since Yuval Dagim is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Caesarstone, below.
Is Caesarstone Ltd. Growing?
On average over the last three years, Caesarstone Ltd. has shrunk earnings per share by 61% each year (measured with a line of best fit). It saw its revenue drop 4.5% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Caesarstone Ltd. Been A Good Investment?
Given the total loss of 46% over three years, many shareholders in Caesarstone Ltd. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
It looks like Caesarstone Ltd. pays its CEO less than similar sized companies.
Shareholders should note that compensation for Yuval Dagim is under the median of a group of similar sized companies. But then, EPS growth is lacking and so are the returns to shareholders. While one could argue it is appropriate for the CEO to be paid less than other CEOs of similar sized companies, given company performance, we would not call the pay overly generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Caesarstone.
If you want to buy a stock that is better than Caesarstone, this free list of high return, low debt companies is a great place to look.
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