Why AudioCodes Ltd.’s (NASDAQ:AUDC) CEO Pay Matters To You

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Shabtai Adlersberg has been the CEO of AudioCodes Ltd. (NASDAQ:AUDC) since 1993. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for AudioCodes

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

According to our data, AudioCodes Ltd. has a market capitalization of US$488m, and pays its CEO total annual compensation worth US$1.5m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$366k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.7m.

That means Shabtai Adlersberg receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at AudioCodes has changed over time.

NasdaqGS:AUDC CEO Compensation, July 13th 2019
NasdaqGS:AUDC CEO Compensation, July 13th 2019

Is AudioCodes Ltd. Growing?

Over the last three years AudioCodes Ltd. has grown its earnings per share (EPS) by an average of 26% per year (using a line of best fit). It achieved revenue growth of 11% over the last year.

This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.

Has AudioCodes Ltd. Been A Good Investment?

Most shareholders would probably be pleased with AudioCodes Ltd. for providing a total return of 319% over three years. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.

In Summary…

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

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying AudioCodes shares with their own money (free access).

If you want to buy a stock that is better than AudioCodes, this free list of high return, low debt companies is a great place to look.

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.