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Key Things To Understand About Aspira Women's Health's (NASDAQ:AWH) CEO Pay Cheque

Simply Wall St
·4 min read

Valerie Palmieri has been the CEO of Aspira Women's Health Inc. (NASDAQ:AWH) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Aspira Women's Health pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Aspira Women's Health

How Does Total Compensation For Valerie Palmieri Compare With Other Companies In The Industry?

Our data indicates that Aspira Women's Health Inc. has a market capitalization of US$319m, and total annual CEO compensation was reported as US$942k for the year to December 2019. Notably, that's an increase of 38% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$394k.

On comparing similar companies from the same industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$2.2m. In other words, Aspira Women's Health pays its CEO lower than the industry median. What's more, Valerie Palmieri holds US$685k worth of shares in the company in their own name.

Component

2019

2018

Proportion (2019)

Salary

US$394k

US$375k

42%

Other

US$548k

US$309k

58%

Total Compensation

US$942k

US$684k

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. Aspira Women's Health pays out 42% of remuneration in the form of a salary, significantly higher than the industry average. 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

A Look at Aspira Women's Health Inc.'s Growth Numbers

Over the past three years, Aspira Women's Health Inc. has seen its earnings per share (EPS) grow by 9.3% per year. In the last year, its revenue is up 25%.

It's great to see that revenue growth is strong. Combined with modest EPS growth, we get a good impression of the company. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Aspira Women's Health Inc. Been A Good Investment?

Most shareholders would probably be pleased with Aspira Women's Health Inc. for providing a total return of 84% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

As previously discussed, Valerie is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, shareholder returns are rock solid over the past three years, and that’s undoubtedly a good sign. Considering this fine result for investors, we believe CEO compensation to be apt.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 4 warning signs for Aspira Women's Health that investors should think about before committing capital to this stock.

Important note: Aspira Women's Health is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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.