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What Can We Conclude About Predictive Oncology's (NASDAQ:POAI) CEO Pay?

Simply Wall St
·4 min read

This article will reflect on the compensation paid to Carl Schwartz who has served as CEO of Predictive Oncology Inc. (NASDAQ:POAI) since 2016. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Predictive Oncology

Comparing Predictive Oncology Inc.'s CEO Compensation With the industry

According to our data, Predictive Oncology Inc. has a market capitalization of US$12m, and paid its CEO total annual compensation worth US$477k over the year to December 2019. We note that's an increase of 96% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$100k.

On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$581k. From this we gather that Carl Schwartz is paid around the median for CEOs in the industry. What's more, Carl Schwartz holds US$1.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2019

2018

Proportion (2019)

Salary

US$100k

US$83k

21%

Other

US$377k

US$159k

79%

Total Compensation

US$477k

US$243k

100%

Talking in terms of the industry, salary represented approximately 20% of total compensation out of all the companies we analyzed, while other remuneration made up 80% of the pie. There isn't a significant difference between Predictive Oncology and the broader market, in terms of salary allocation in the overall compensation package. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

Predictive Oncology Inc.'s Growth

Predictive Oncology Inc. has seen its earnings per share (EPS) increase by 26% a year over the past three years. Its revenue is up 14% 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. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Predictive Oncology Inc. Been A Good Investment?

Since shareholders would have lost about 95% over three years, some Predictive Oncology Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As previously discussed, Carl is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, the company has logged negative shareholder returns over the previous three years. But on the bright side, EPS growth is positive over the same period. Overall, we wouldn't say Carl is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 6 warning signs for Predictive Oncology (of which 3 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

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.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.