Michael Feldschuh has been the CEO of Daxor Corporation (NYSEMKT:DXR) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
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How Does Michael Feldschuh's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Daxor Corporation has a market cap of US$29m, and is paying total annual CEO compensation of US$100k. (This is based on the year to December 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$100k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$451k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Daxor has changed from year to year.
Is Daxor Corporation Growing?
Over the last three years Daxor Corporation has grown its earnings per share (EPS) by an average of 73% per year (using a line of best fit). It saw its revenue drop -22% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. Shareholders might be interested in this free visualization of analyst forecasts.
Has Daxor Corporation Been A Good Investment?
With a three year total loss of 2.2%, Daxor Corporation would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
It appears that Daxor Corporation remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. We're not critical of the remuneration Michael Feldschuh receives, but it would be good to see improved returns to shareholders before the remuneration grows too much.
When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. Shareholders may want to check for free if Daxor insiders are buying or selling shares.
Important note: Daxor may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.