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Increases to CEO Compensation Might Be Put On Hold For Now at Sadot Group Inc. (NASDAQ:SDOT)

Simply Wall St ·  Dec 12 18:56

Key Insights

  • Sadot Group's Annual General Meeting to take place on 18th of December
  • Salary of US$350.0k is part of CEO Mike Roper's total remuneration
  • The overall pay is 105% above the industry average
  • Sadot Group's EPS grew by 53% over the past three years while total shareholder loss over the past three years was 63%

In the past three years, the share price of Sadot Group Inc. (NASDAQ:SDOT) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 18th of December. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

How Does Total Compensation For Mike Roper Compare With Other Companies In The Industry?

According to our data, Sadot Group Inc. has a market capitalization of US$23m, and paid its CEO total annual compensation worth US$782k over the year to December 2023. We note that's an increase of 42% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$350k.

For comparison, other companies in the American Food industry with market capitalizations below US$200m, reported a median total CEO compensation of US$381k. This suggests that Mike Roper is paid more than the median for the industry. Furthermore, Mike Roper directly owns US$427k worth of shares in the company.

Component20232022Proportion (2023)
Salary US$350k US$350k 45%
Other US$432k US$199k 55%
Total CompensationUS$782k US$549k100%

On an industry level, roughly 19% of total compensation represents salary and 81% is other remuneration. It's interesting to note that Sadot Group 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.

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NasdaqCM:SDOT CEO Compensation December 12th 2024

A Look at Sadot Group Inc.'s Growth Numbers

Over the past three years, Sadot Group Inc. has seen its earnings per share (EPS) grow by 53% per year. Its revenue is down 7.4% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Sadot Group Inc. Been A Good Investment?

With a total shareholder return of -63% over three years, Sadot Group Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 4 warning signs for Sadot Group you should be aware of, and 1 of them is potentially serious.

Switching gears from Sadot Group, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.

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