Explore Gilat Satellite Networks's Fair Values from the Community and select yours

Key Insights

• Gilat Satellite Networks' Annual General Meeting to take place on 14th of August
• CEO Adi Sfadia's total compensation includes salary of US$394.5k
• Total compensation is 67% below industry average
• Over the past three years, Gilat Satellite Networks' EPS grew by 445% and over the past three years, the total shareholder return was 28%

The decent performance at Gilat Satellite Networks Ltd. (NASDAQ:GILT) recently will please most shareholders as they go into the AGM coming up on 14th of August. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

Comparing Gilat Satellite Networks Ltd.'s CEO Compensation With The Industry

According to our data, Gilat Satellite Networks Ltd. has a market capitalization of US$523m, and paid its CEO total annual compensation worth US$1.0m over the year to December 2024. That's a notable increase of 16% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$394k.

On examining similar-sized companies in the American Communications industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$3.2m. Accordingly, Gilat Satellite Networks pays its CEO under the industry median.

Component	2024	2023	Proportion (2024)
Salary	US$394k	US$356k	38%
Other	US$652k	US$549k	62%
Total Compensation	US$1.0m	US$906k	100%

Talking in terms of the industry, salary represented approximately 19% of total compensation out of all the companies we analyzed, while other remuneration made up 81% of the pie. According to our research, Gilat Satellite Networks has allocated a higher percentage of pay to salary in comparison to the wider industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Gilat Satellite Networks Ltd.'s Growth

Gilat Satellite Networks Ltd. has seen its earnings per share (EPS) increase by 445% a year over the past three years. It achieved revenue growth of 20% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Gilat Satellite Networks Ltd. Been A Good Investment?

Gilat Satellite Networks Ltd. has generated a total shareholder return of 28% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

The company's overall performance, while not bad, could be better. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business.

Switching gears from Gilat Satellite Networks, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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.