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Dolev Rafaeli has been the CEO of STRATA Skin Sciences, Inc. (NASDAQ:SSKN) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Dolev Rafaeli Compare With Other Companies In The Industry?
According to our data, STRATA Skin Sciences, Inc. has a market capitalization of US$43m, and paid its CEO total annual compensation worth US$1.2m over the year to December 2019. That's a notable decrease of 58% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$400k.
For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$581k. Hence, we can conclude that Dolev Rafaeli is remunerated higher than the industry median. Moreover, Dolev Rafaeli also holds US$1.2m worth of STRATA Skin Sciences stock directly under their own name.
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. STRATA Skin Sciences is paying a higher share of its remuneration through a 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.
A Look at STRATA Skin Sciences, Inc.'s Growth Numbers
STRATA Skin Sciences, Inc.'s earnings per share (EPS) grew 116% per year over the last three years. Its revenue is down 12% over the previous year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 STRATA Skin Sciences, Inc. Been A Good Investment?
Given the total shareholder loss of 3.1% over three years, many shareholders in STRATA Skin Sciences, Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As we touched on above, STRATA Skin Sciences, Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, the EPS growth is certainly impressive, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Although we'd stop short of calling it inappropriate, we think Dolev is earning a very handsome sum.
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. That's why we did some digging and identified 3 warning signs for STRATA Skin Sciences that you should be aware of before investing.
Switching gears from STRATA Skin Sciences, 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.
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.
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