AudioCodes Ltd.'s (NASDAQ:AUDC) CEO Will Probably Have Their Compensation Approved By Shareholders

The performance at AudioCodes Ltd. (NASDAQ:AUDC) has been quite strong recently and CEO Shabtai Adlersberg has played a role in it. Coming up to the next AGM on 14 September 2021, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for AudioCodes

How Does Total Compensation For Shabtai Adlersberg Compare With Other Companies In The Industry?

Our data indicates that AudioCodes Ltd. has a market capitalization of US$1.1b, and total annual CEO compensation was reported as US$3.2m for the year to December 2020. We note that's an increase of 35% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$385k.

On examining similar-sized companies in the industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$3.4m. This suggests that AudioCodes remunerates its CEO largely in line with the industry average. Furthermore, Shabtai Adlersberg directly owns US$149m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	US$385k	US$371k	12%
Other	US$2.8m	US$2.0m	88%
Total Compensation	US$3.2m	US$2.4m	100%

Talking in terms of the industry, salary represented approximately 22% of total compensation out of all the companies we analyzed, while other remuneration made up 78% of the pie. It's interesting to note that AudioCodes allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at AudioCodes Ltd.'s Growth Numbers

AudioCodes Ltd. has seen its earnings per share (EPS) increase by 67% a year over the past three years. In the last year, its revenue is up 12%.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 AudioCodes Ltd. Been A Good Investment?

Most shareholders would probably be pleased with AudioCodes Ltd. for providing a total return of 221% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

Shareholders may want to check for free if AudioCodes insiders are buying or selling shares.

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.
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