Yahoo Finance We Discuss Why IDT Corporation's (NYSE:IDT) CEO May Deserve A Higher Pay Packet
Key Insights
IDT to hold its Annual General Meeting on 13th of December
Total pay for CEO Shmuel Jonas includes US$495.0k salary
The total compensation is 73% less than the average for the industry
IDT's total shareholder return over the past three years was 140% while its EPS grew by 7.2% over the past three years
The decent performance at IDT Corporation (NYSE:IDT) recently will please most shareholders as they go into the AGM coming up on 13th of December. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.
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$779m, and reported total annual CEO compensation of US$1.1m for the year to July 2023. That's just a smallish increase of 4.7% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$495k.
On comparing similar companies from the American Telecom industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$4.0m. In other words, IDT pays its CEO lower than the industry median. Moreover, Shmuel Jonas also holds US$10m worth of IDT stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$495k | US$495k | 46% |
Other | US$580k | US$533k | 54% |
Total Compensation | US$1.1m | US$1.0m | 100% |
On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. According to our research, IDT has allocated a higher percentage of pay to salary in comparison to the wider industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
IDT Corporation's Growth
Over the past three years, IDT Corporation has seen its earnings per share (EPS) grow by 7.2% per year. In the last year, its revenue is down 7.4%.
We generally like to see a little revenue growth, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has IDT Corporation Been A Good Investment?
We think that the total shareholder return of 140%, over three years, would leave most IDT Corporation shareholders smiling. 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.
To Conclude...
The company's overall performance, while not bad, could be better. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
So you may want to check if insiders are buying IDT shares with their own money (free access).
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.
