Yahoo Finance Shareholders May Be A Bit More Conservative With Avalon GloboCare Corp.'s (NASDAQ:ALBT) CEO Compensation For Now
Key Insights
Avalon GloboCare will host its Annual General Meeting on 12th of October
CEO David Jin's total compensation includes salary of US$360.0k
The overall pay is comparable to the industry average
Avalon GloboCare's EPS grew by 16% over the past three years while total shareholder loss over the past three years was 94%
Shareholders of Avalon GloboCare Corp. (NASDAQ:ALBT) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 12th of October. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
Check out our latest analysis for Avalon GloboCare
Comparing Avalon GloboCare Corp.'s CEO Compensation With The Industry
At the time of writing, our data shows that Avalon GloboCare Corp. has a market capitalization of US$8.2m, and reported total annual CEO compensation of US$360k for the year to December 2022. This was the same amount the CEO received in the prior year. Notably, the salary of US$360k is the entirety of the CEO compensation.
For comparison, other companies in the American Real Estate industry with market capitalizations below US$200m, reported a median total CEO compensation of US$403k. This suggests that Avalon GloboCare remunerates its CEO largely in line with the industry average. Moreover, David Jin also holds US$1.2m worth of Avalon GloboCare stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2022 | 2021 | Proportion (2022) |
Salary | US$360k | US$360k | 100% |
Other | - | - | - |
Total Compensation | US$360k | US$360k | 100% |
Speaking on an industry level, nearly 29% of total compensation represents salary, while the remainder of 71% is other remuneration. At the company level, Avalon GloboCare pays David Jin solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Avalon GloboCare Corp.'s Growth Numbers
Over the past three years, Avalon GloboCare Corp. has seen its earnings per share (EPS) grow by 16% per year. It saw its revenue drop 21% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Avalon GloboCare Corp. Been A Good Investment?
The return of -94% over three years would not have pleased Avalon GloboCare Corp. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Avalon GloboCare rewards its CEO solely through a salary, ignoring non-salary benefits completely. The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.
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 5 warning signs (and 2 which are a bit unpleasant) in Avalon GloboCare we think you should know about.
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.
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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.
