We Discuss Why The CEO Of Ceragon Networks Ltd. (NASDAQ:CRNT) Is Due For A Pay Rise

Key Insights

• Ceragon Networks' Annual General Meeting to take place on 15th of May
• CEO Doron Arazi's total compensation includes salary of US$432.4k
• Total compensation is 38% below industry average
• Ceragon Networks' EPS grew by 108% over the past three years while total shareholder return over the past three years was 38%

Our free stock report includes 1 warning sign investors should be aware of before investing in Ceragon Networks. Read for free now.

The impressive results at Ceragon Networks Ltd. (NASDAQ:CRNT) recently will be great news for shareholders. At the upcoming AGM on 15th 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. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

See our latest analysis for Ceragon Networks

How Does Total Compensation For Doron Arazi Compare With Other Companies In The Industry?

At the time of writing, our data shows that Ceragon Networks Ltd. has a market capitalization of US$201m, and reported total annual CEO compensation of US$1.1m for the year to December 2024. That's just a smallish increase of 7.2% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$432k.

For comparison, other companies in the American Communications industry with market capitalizations ranging between US$100m and US$400m had a median total CEO compensation of US$1.8m. This suggests that Doron Arazi is paid below the industry median.

Component	2024	2023	Proportion (2024)
Salary	US$432k	US$368k	39%
Other	US$688k	US$677k	61%
Total Compensation	US$1.1m	US$1.0m	100%

Speaking on an industry level, nearly 18% of total compensation represents salary, while the remainder of 82% is other remuneration. According to our research, Ceragon Networks has allocated a higher percentage of pay to salary in comparison to the wider industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Ceragon Networks Ltd.'s Growth Numbers

Ceragon Networks Ltd. has seen its earnings per share (EPS) increase by 108% a year over the past three years. It achieved revenue growth of 12% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Ceragon Networks Ltd. Been A Good Investment?

We think that the total shareholder return of 38%, over three years, would leave most Ceragon Networks Ltd. shareholders smiling. 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.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Ceragon Networks that investors should think about before committing capital to this stock.

Switching gears from Ceragon Networks, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.