- Oops!Something went wrong.Please try again later.
Rafi Amit became the CEO of Camtek Ltd. (NASDAQ:CAMT) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Rafi Amit's Compensation Compare With Similar Sized Companies?
According to our data, Camtek Ltd. has a market capitalization of US$323m, and paid its CEO total annual compensation worth US$831k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$313k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$2.2m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Speaking on an industry level, we can see that nearly 16% of total compensation represents salary, while the remainder of 84% is other remuneration. Camtek is paying a higher share of its remuneration through a salary in comparison to the overall industry.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance. The graphic below shows how CEO compensation at Camtek has changed from year to year.
Is Camtek Ltd. Growing?
Camtek Ltd. has seen earnings per share (EPS) move positively by an average of 73% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 8.8%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has Camtek Ltd. Been A Good Investment?
Most shareholders would probably be pleased with Camtek Ltd. for providing a total return of 137% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
It appears that Camtek Ltd. remunerates its CEO below most similar sized companies.
Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Rafi Amit deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders are also buying shares with their own money. Shifting gears from CEO pay for a second, we've picked out 3 warning signs for Camtek that investors should be aware of in a dynamic business environment.
Important note: Camtek may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.