Key Insights

• Cellebrite DI to hold its Annual General Meeting on 17th of September
• CEO Yossi Carmil's total compensation includes salary of US$477.0k
• Total compensation is 71% below industry average
• Over the past three years, Cellebrite DI's EPS fell by 79% and over the past three years, the total shareholder return was 59%

The decent performance at Cellebrite DI Ltd. (NASDAQ:CLBT) recently will please most shareholders as they go into the AGM coming up on 17th of September. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

How Does Total Compensation For Yossi Carmil Compare With Other Companies In The Industry?

At the time of writing, our data shows that Cellebrite DI Ltd. has a market capitalization of US$3.4b, and reported total annual CEO compensation of US$2.1m for the year to December 2023. That's a modest increase of 6.9% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$477k.

In comparison with other companies in the American Software industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$7.5m. Accordingly, Cellebrite DI pays its CEO under the industry median. Furthermore, Yossi Carmil directly owns US$81m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. It's interesting to note that Cellebrite DI 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 Cellebrite DI Ltd.'s Growth Numbers

Over the last three years, Cellebrite DI Ltd. has shrunk its earnings per share by 79% per year. Its revenue is up 23% over the last year.

Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Cellebrite DI Ltd. Been A Good Investment?

Boasting a total shareholder return of 59% over three years, Cellebrite DI Ltd. has done well by shareholders. 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.

To Conclude...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Cellebrite DI that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.