Kornit CEO set for raise despite share price plummeting 85% in a year
Kornit CEO set for raise despite share price plummeting 85% in a year
The printing company currently has a market cap of just over $1 billion, falling from over $7 billion one year ago. However, Kornit’s board wants to increase Ronen Samuel’s overall compensation from $2.18 million to $3.4 million
Not everyone would want to be the CEO of struggling printing company Kornit Digital at this time. However, there is little doubt that anyone would want to be a CEO of a company with a board that provides the support Kornit CEO Ronen Samuel receives from his directors.
Despite the fact the company, which develops, manufactures and markets industrial and commercial printing solutions, has parted with dozens of employees over recent months and has registered a drop of over 20% in revenue and a bottom line loss, Kornit’s board has approved a significant raise in Samuel’s compensation. Kornit shareholders will soon be asked to approve the raise, which exceeds $1 million on an annual basis.
Kornit is planning to almost double Samuel’s options and restricted stock from $1.3 million to $2.5 million. This in addition to his base salary of $442,000 and a bonus reaching a full year’s salary. Should the raise be approved, Samuel’s overall compensation will increase from $2.18 million to $3.4 million, a jump of 55%.
The board stated that it believes Samuel, who has served as CEO since 2018, is the best CEO for the company and that losing him at this time would present a big challenge. It also added that Samuel’s services are in demand and that the level of compensation he could receive abroad exceeds what he is currently making.
Kornit has experienced a particularly difficult year, seeing its market cap fall by 86% compared to 32% for all Nasdaq shares. Kornit currently has a market cap of just over $1 billion, falling from over $7 billion one year ago. The company was traded at a value of $600 million when Samuel entered his role.
Kornit registered impressive growth under Samuel, at least until 2022. The company saw its revenue fall 11% to $208 million in the first nine months of the year and expects to finish 2022 with around $300 million in revenue, a drop from the previous year. Kornit also laid off around 50 of its 900 employees over recent months in order to cut costs.
