Here's Why IDT Corporation's (NYSE:IDT) CEO May Deserve A Raise

Key Insights

• IDT will host its Annual General Meeting on 11th of November
• CEO Shmuel Jonas' total compensation includes salary of US$495.0k
• Total compensation is 79% below industry average
• IDT's total shareholder return over the past three years was 104% while its EPS grew by 42% over the past three years

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The impressive results at IDT Corporation (NYSE:IDT) recently will be great news for shareholders. At the upcoming AGM on 11th of November, 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. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

See our latest analysis for IDT

Comparing IDT Corporation's CEO Compensation With The Industry

At the time of writing, our data shows that IDT Corporation has a market capitalization of US$1.3b, and reported total annual CEO compensation of US$1.5m for the year to July 2025. That's a notable increase of 36% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$495k.

On comparing similar companies from the American Telecom industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$6.9m. That is to say, Shmuel Jonas is paid under the industry median. Furthermore, Shmuel Jonas directly owns US$9.1m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 22% of total compensation represents salary and 78% is other remuneration. IDT is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

IDT Corporation's Growth

Over the past three years, IDT Corporation has seen its earnings per share (EPS) grow by 42% per year. Its revenue is up 2.1% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 IDT Corporation Been A Good Investment?

We think that the total shareholder return of 104%, over three years, would leave most IDT Corporation 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.

In Summary...

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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for IDT that investors should think about before committing capital to this stock.

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.