Nutriband Inc.'s (NASDAQ:NTRB) CEO Compensation Looks Acceptable To Us And Here's Why
Shareholders may be wondering what CEO Gareth Sheridan plans to do to improve the less than great performance at Nutriband Inc. (NASDAQ:NTRB) recently. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 09 December 2022. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.
Check out our latest analysis for Nutriband
How Does Total Compensation For Gareth Sheridan Compare With Other Companies In The Industry?
At the time of writing, our data shows that Nutriband Inc. has a market capitalization of US$31m, and reported total annual CEO compensation of US$311k for the year to January 2022. That's a notable increase of 48% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$149k.
For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$1.1m. In other words, Nutriband pays its CEO lower than the industry median. What's more, Gareth Sheridan holds US$7.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2022 | 2021 | Proportion (2022) |
Salary | US$149k | US$60k | 48% |
Other | US$162k | US$150k | 52% |
Total Compensation | US$311k | US$210k | 100% |
On an industry level, roughly 22% of total compensation represents salary and 78% is other remuneration. Nutriband is paying a higher share of its remuneration through a salary in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Nutriband Inc.'s Growth Numbers
Over the last three years, Nutriband Inc. has shrunk its earnings per share by 35% per year. It achieved revenue growth of 23% over the last year.
The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Nutriband Inc. Been A Good Investment?
With a total shareholder return of -74% over three years, Nutriband Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
The loss to shareholders over the past three years is certainly concerning. The downward trend in share price performance may be attributable to the the fact that earnings growth has gone backwards. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.
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. We did our research and spotted 4 warning signs for Nutriband that investors should look into moving forward.
Important note: Nutriband 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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