Erez Antebi has been the CEO of Allot Ltd. (NASDAQ:ALLT) since 2017. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Erez Antebi's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Allot Ltd. has a market cap of US$272m, and is paying total annual CEO compensation of US$666k. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$268k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.2m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Allot, below.
Is Allot Ltd. Growing?
Over the last three years Allot Ltd. has grown its earnings per share (EPS) by an average of 13% per year (using a line of best fit). In the last year, its revenue is up 16%.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Allot Ltd. Been A Good Investment?
Most shareholders would probably be pleased with Allot Ltd. for providing a total return of 55% 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.
It looks like Allot Ltd. pays its CEO less than similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Erez Antebi deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. The cherry on top would be if company insiders are buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Allot.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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