Increases to Natural Alternatives International, Inc.'s (NASDAQ:NAII) CEO Compensation Might Cool off for now
CEO Mark LeDoux has done a decent job of delivering relatively good performance at Natural Alternatives International, Inc. (NASDAQ:NAII) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 02 December 2022. However, some shareholders may still want to keep CEO compensation within reason.
See our latest analysis for Natural Alternatives International
Comparing Natural Alternatives International, Inc.'s CEO Compensation With The Industry
According to our data, Natural Alternatives International, Inc. has a market capitalization of US$47m, and paid its CEO total annual compensation worth US$954k over the year to June 2022. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$473k.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$296k. This suggests that Mark LeDoux is paid more than the median for the industry. Moreover, Mark LeDoux also holds US$7.6m worth of Natural Alternatives International 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$473k | US$425k | 50% |
Other | US$482k | US$527k | 50% |
Total Compensation | US$954k | US$952k | 100% |
On an industry level, roughly 35% of total compensation represents salary and 65% is other remuneration. Natural Alternatives International is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Natural Alternatives International, Inc.'s Growth Numbers
Natural Alternatives International, Inc. has seen its earnings per share (EPS) increase by 33% a year over the past three years. The trailing twelve months of revenue was pretty much the same as the prior period.
Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Natural Alternatives International, Inc. Been A Good Investment?
Natural Alternatives International, Inc. has generated a total shareholder return of 0.5% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.
To Conclude...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Natural Alternatives International that investors should be aware of in a dynamic business environment.
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.
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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.
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