We Think Shareholders May Want To Consider A Review Of Allot Ltd.'s (NASDAQ:ALLT) CEO Compensation Package
Key Insights
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Allot's Annual General Meeting to take place on 13th of December
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CEO Erez Antebi's total compensation includes salary of US$286.2k
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The total compensation is similar to the average for the industry
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Allot's three-year loss to shareholders was 87% while its EPS was down 59% over the past three years
Allot Ltd. (NASDAQ:ALLT) has not performed well recently and CEO Erez Antebi will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 13th of December. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.
Check out our latest analysis for Allot
Comparing Allot Ltd.'s CEO Compensation With The Industry
Our data indicates that Allot Ltd. has a market capitalization of US$48m, and total annual CEO compensation was reported as US$782k for the year to December 2022. That's a notable decrease of 10% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$286k.
On comparing similar-sized companies in the American Software industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$630k. So it looks like Allot compensates Erez Antebi in line with the median for the industry. What's more, Erez Antebi holds US$531k worth of shares in the company in their own name.
| Component | 2022 | 2021 | Proportion (2022) |
| Salary | US$286k | US$297k | 37% |
| Other | US$496k | US$575k | 63% |
| Total Compensation | US$782k | US$872k | 100% |
Speaking on an industry level, nearly 12% of total compensation represents salary, while the remainder of 88% is other remuneration. Allot pays out 37% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Allot Ltd.'s Growth Numbers
Allot Ltd. has reduced its earnings per share by 59% a year over the last three years. In the last year, its revenue is down 22%.
Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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.