NASDAQ:CRNT) since 2005. This analysis will also assess whether Ceragon Networks pays its CEO appropriately, considering recent earnings growth and total shareholder returns.” data-reactid=”28″>This article will reflect on the compensation paid to Ira Palti who has served as CEO of Ceragon Networks Ltd. (NASDAQ:CRNT) since 2005. This analysis will also assess whether Ceragon Networks pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for Ceragon Networks ” data-reactid=”29″> Check out our latest analysis for Ceragon Networks
How Does Total Compensation For Ira Palti 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$174m, and reported total annual CEO compensation of US$716k for the year to December 2019. We note that’s a decrease of 35% compared to last year. In particular, the salary of US$378.6k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$809k. From this we gather that Ira Palti is paid around the median for CEOs in the industry. Moreover, Ira Palti also holds US$2.3m worth of Ceragon Networks stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | US$379k | US$370k | 53% |
| Other | US$337k | US$739k | 47% |
| Total Compensation | US$716k | US$1.1m | 100% |
Talking in terms of the industry, salary represented approximately 24% of total compensation out of all the companies we analyzed, while other remuneration made up 76% of the pie. Ceragon Networks is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Ceragon Networks Ltd.’s Growth
Ceragon Networks Ltd. has reduced its earnings per share by 56% a year over the last three years. In the last year, its revenue is down 17%.
this free visualization of analyst forecasts.” data-reactid=”54″>Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Historical performance can sometimes be a good indicator on what’s coming up next but if you want to peer into the company’s future you might be interested in this free visualization of analyst forecasts.
Has Ceragon Networks Ltd. Been A Good Investment?
Ceragon Networks Ltd. has not done too badly by shareholders, with a total return of 3.9%, over three years. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary…
As we touched on above, Ceragon Networks Ltd. is currently paying a compensation that’s close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Ceragon Networks has had a tough time in recent years, with declining EPS growth, and although shareholder returns are stable, they are hardly worth celebrating. This doesn’t compare well with CEO compensation, which is close to the industry median. We would stop short of the compensation is inappropriate, but we can’t say the executive is underpaid.
2 warning signs for Ceragon Networks that investors should think about before committing capital to this stock.” data-reactid=”59″>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 2 warning signs for Ceragon Networks that investors should think about before committing capital to this stock.
list of interesting companies that have HIGH return on equity and low debt.” data-reactid=”64″>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.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”65″>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. 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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