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Michael Feldschuh has been the CEO of Daxor Corporation (NYSEMKT:DXR) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Daxor pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Michael Feldschuh Compare With Other Companies In The Industry?
At the time of writing, our data shows that Daxor Corporation has a market capitalization of US$69m, and reported total annual CEO compensation of US$100k for the year to December 2019. This means that the compensation hasn't changed much from last year. It is worth noting that the CEO compensation consists entirely of the salary, worth 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$595k. That is to say, Michael Feldschuh is paid under the industry median. Furthermore, Michael Feldschuh directly owns US$2.8m worth of shares in the company, implying that they are deeply invested in the company's success.
Talking in terms of the industry, salary represented approximately 21% of total compensation out of all the companies we analyzed, while other remuneration made up 79% of the pie. On a company level, Daxor prefers to reward its CEO through a salary, opting not to pay Michael Feldschuh through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Daxor Corporation's Growth Numbers
Over the last three years, Daxor Corporation has shrunk its earnings per share by 19% per year. In the last year, its revenue is down 12%.
Few shareholders would be pleased to read that earnings have declined. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Daxor Corporation Been A Good Investment?
Most shareholders would probably be pleased with Daxor Corporation for providing a total return of 188% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Daxor pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we noted earlier, Daxor pays its CEO lower than the norm for similar-sized companies belonging to the same industry. And while earnings growth is in the red, shareholder returns have been great over the last three years, so that's certainly a bright spot! Although we'd like to see positive earnings growth, we'd argue the remuneration is modest, based on our observations.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 4 warning signs for Daxor (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.
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