Yahoo Finance We Discuss Why The CEO Of Bel Fuse Inc. (NASDAQ:BELF.A) Is Due For A Pay Rise
Key Insights
Bel Fuse to hold its Annual General Meeting on 14th of May
CEO Daniel Bernstein's total compensation includes salary of US$600.0k
The overall pay is 63% below the industry average
Bel Fuse's EPS grew by 55% over the past three years while total shareholder return over the past three years was 345%
Shareholders will be pleased by the impressive results for Bel Fuse Inc. (NASDAQ:BELF.A) recently and CEO Daniel Bernstein has played a key role. At the upcoming AGM on 14th of May, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.
View our latest analysis for Bel Fuse
How Does Total Compensation For Daniel Bernstein Compare With Other Companies In The Industry?
According to our data, Bel Fuse Inc. has a market capitalization of US$792m, and paid its CEO total annual compensation worth US$1.5m over the year to December 2023. That's a notable increase of 85% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$600k.
On examining similar-sized companies in the American Electronic industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$4.1m. In other words, Bel Fuse pays its CEO lower than the industry median. What's more, Daniel Bernstein holds US$30m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$600k | US$400k | 39% |
Other | US$929k | US$425k | 61% |
Total Compensation | US$1.5m | US$825k | 100% |
On an industry level, roughly 31% of total compensation represents salary and 69% is other remuneration. Bel Fuse is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Bel Fuse Inc.'s Growth
Bel Fuse Inc.'s earnings per share (EPS) grew 55% per year over the last three years. In the last year, its revenue is down 14%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Bel Fuse Inc. Been A Good Investment?
We think that the total shareholder return of 345%, over three years, would leave most Bel Fuse Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Bel Fuse that investors should look into moving forward.
Important note: Bel Fuse is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.
