Shareholders Will Likely Find NanoVibronix, Inc.'s (NASDAQ:NAOV) CEO Compensation Acceptable
Shareholders may be wondering what CEO Brian Murphy plans to do to improve the less than great performance at NanoVibronix, Inc. (NASDAQ:NAOV) recently. At the next AGM coming up on 15 December 2022, they can influence managerial decision making through voting on resolutions, including executive remuneration. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. In our opinion, CEO compensation does not look excessive and we discuss why.
View our latest analysis for NanoVibronix
Comparing NanoVibronix, Inc.'s CEO Compensation With The Industry
According to our data, NanoVibronix, Inc. has a market capitalization of US$12m, and paid its CEO total annual compensation worth US$405k over the year to December 2021. Notably, that's an increase of 11% over the year before. Notably, the salary which is US$231.0k, represents a considerable chunk of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$896k. In other words, NanoVibronix pays its CEO lower than the industry median.
Component | 2021 | 2020 | Proportion (2021) |
Salary | US$231k | US$231k | 57% |
Other | US$174k | US$134k | 43% |
Total Compensation | US$405k | US$365k | 100% |
On an industry level, roughly 19% of total compensation represents salary and 81% is other remuneration. NanoVibronix pays out 57% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
NanoVibronix, Inc.'s Growth
NanoVibronix, Inc. has seen its earnings per share (EPS) increase by 27% a year over the past three years. In the last year, its revenue is up 61%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has NanoVibronix, Inc. Been A Good Investment?
With a total shareholder return of -87% over three years, NanoVibronix, Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
The fact that shareholders have earned a negative share price return is certainly disconcerting. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. A key question may be why the fundamentals have not yet been reflected into the share price. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 6 warning signs for NanoVibronix (of which 3 are a bit concerning!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from NanoVibronix, 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.
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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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