Rafi Amit has been the CEO of Camtek Ltd. (NASDAQ:CAMT) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Camtek pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Comparing Camtek Ltd.'s CEO Compensation With the industry
Our data indicates that Camtek Ltd. has a market capitalization of US$587m, and total annual CEO compensation was reported as US$1.1m for the year to December 2019. Notably, that's an increase of 36% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$313k.
On comparing similar companies from the same industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$1.8m. This suggests that Rafi Amit is paid below the industry median.
On an industry level, around 14% of total compensation represents salary and 86% is other remuneration. It's interesting to note that Camtek pays out a greater portion of remuneration through salary, compared to the industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Camtek Ltd.'s Growth Numbers
Camtek Ltd.'s earnings per share (EPS) grew 53% per year over the last three years. In the last year, its revenue changed by just 0.7%.
Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Camtek Ltd. Been A Good Investment?
Most shareholders would probably be pleased with Camtek Ltd. for providing a total return of 211% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
As we touched on above, Camtek Ltd. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. And given most shareholders are probably very happy with recent shareholder returns, they might even think Rafi deserves a raise!
Switching gears from Camtek, 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.
This article by Simply Wall St is general in nature. 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.
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