How Should Investors React To AudioCodes Ltd.'s (NASDAQ:AUDC) CEO Pay?

In This Article:

Shabtai Adlersberg became the CEO of AudioCodes Ltd. (NASDAQ:AUDC) in 1993. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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.

View our latest analysis for AudioCodes

How Does Shabtai Adlersberg's Compensation Compare With Similar Sized Companies?

Our data indicates that AudioCodes Ltd. is worth US$566m, and total annual CEO compensation is US$1.5m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$366k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.8m.

So Shabtai Adlersberg receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at AudioCodes, below.

NasdaqGS:AUDC CEO Compensation, September 16th 2019
NasdaqGS:AUDC CEO Compensation, September 16th 2019

Is AudioCodes Ltd. Growing?

On average over the last three years, AudioCodes Ltd. has grown earnings per share (EPS) by 19% each year (using a line of best fit). It achieved revenue growth of 12% over the last year.

This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has AudioCodes Ltd. Been A Good Investment?

Most shareholders would probably be pleased with AudioCodes Ltd. for providing a total return of 282% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Shabtai Adlersberg is paid around what is normal the leaders of comparable size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling AudioCodes (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Thank you for reading.