Yahoo Finance Some Shareholders May Object To A Pay Rise For Nature's Sunshine Products, Inc.'s (NASDAQ:NATR) CEO This Year
Key Insights
Nature's Sunshine Products will host its Annual General Meeting on 1st of May
CEO Terrence Moorehead's total compensation includes salary of US$800.0k
The overall pay is 39% below the industry average
Over the past three years, Nature's Sunshine Products' EPS fell by 9.8% and over the past three years, the total loss to shareholders 4.1%
The disappointing performance at Nature's Sunshine Products, Inc. (NASDAQ:NATR) will make some shareholders rather disheartened. The next AGM coming up on 1st of May will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. We think most shareholders will probably pass the CEO compensation, based on what we gathered.
Check out our latest analysis for Nature's Sunshine Products
How Does Total Compensation For Terrence Moorehead Compare With Other Companies In The Industry?
According to our data, Nature's Sunshine Products, Inc. has a market capitalization of US$365m, and paid its CEO total annual compensation worth US$3.5m over the year to December 2023. That's a notable increase of 26% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$800k.
In comparison with other companies in the American Personal Products industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$5.8m. In other words, Nature's Sunshine Products pays its CEO lower than the industry median. Furthermore, Terrence Moorehead directly owns US$7.6m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$800k | US$724k | 23% |
Other | US$2.7m | US$2.1m | 77% |
Total Compensation | US$3.5m | US$2.8m | 100% |
On an industry level, around 66% of total compensation represents salary and 34% is other remuneration. Nature's Sunshine Products sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Nature's Sunshine Products, Inc.'s Growth
Nature's Sunshine Products, Inc. has reduced its earnings per share by 9.8% a year over the last three years. It achieved revenue growth of 5.5% over the last year.
Overall this is not a very positive result for shareholders. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. 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.
Has Nature's Sunshine Products, Inc. Been A Good Investment?
Since shareholders would have lost about 4.1% over three years, some Nature's Sunshine Products, Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Nature's Sunshine Products that investors should look into moving forward.
Switching gears from Nature's Sunshine Products, 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.
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.
