Yahoo Finance NeuroMetrix, Inc.'s (NASDAQ:NURO) CEO Might Not Expect Shareholders To Be So Generous This Year
Key Insights
NeuroMetrix to hold its Annual General Meeting on 30th of April
CEO Shai Gozani's total compensation includes salary of US$444.1k
The overall pay is comparable to the industry average
Over the past three years, NeuroMetrix's EPS fell by 19% and over the past three years, the total loss to shareholders 82%
NeuroMetrix, Inc. (NASDAQ:NURO) has not performed well recently and CEO Shai Gozani will probably need to up their game. At the upcoming AGM on 30th of April, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.
View our latest analysis for NeuroMetrix
How Does Total Compensation For Shai Gozani Compare With Other Companies In The Industry?
Our data indicates that NeuroMetrix, Inc. has a market capitalization of US$8.8m, and total annual CEO compensation was reported as US$476k for the year to December 2023. Notably, that's a decrease of 26% over the year before. In particular, the salary of US$444.1k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the American Medical Equipment industry with market capitalizations below US$200m, reported a median total CEO compensation of US$670k. This suggests that NeuroMetrix remunerates its CEO largely in line with the industry average.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$444k | US$415k | 93% |
Other | US$32k | US$230k | 7% |
Total Compensation | US$476k | US$645k | 100% |
Talking in terms of the industry, salary represented approximately 26% of total compensation out of all the companies we analyzed, while other remuneration made up 74% of the pie. NeuroMetrix is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at NeuroMetrix, Inc.'s Growth Numbers
NeuroMetrix, Inc. has reduced its earnings per share by 19% a year over the last three years. In the last year, its revenue is down 29%.
The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has NeuroMetrix, Inc. Been A Good Investment?
With a total shareholder return of -82% over three years, NeuroMetrix, Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 4 warning signs (and 3 which are a bit unpleasant) in NeuroMetrix we think you should know about.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
