Shareholders May Not Be So Generous With BioSig Technologies, Inc.'s (NASDAQ:BSGM) CEO Compensation And Here's Why
Key Insights
BioSig Technologies to hold its Annual General Meeting on 18th of December
CEO Ken Londoner's total compensation includes salary of US$865.7k
The overall pay is 133% above the industry average
BioSig Technologies' three-year loss to shareholders was 94% while its EPS grew by 50% over the past three years
In the past three years, the share price of BioSig Technologies, Inc. (NASDAQ:BSGM) has struggled to grow and now shareholders are sitting on a loss. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 18th of December. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.
View our latest analysis for BioSig Technologies
Comparing BioSig Technologies, Inc.'s CEO Compensation With The Industry
According to our data, BioSig Technologies, Inc. has a market capitalization of US$26m, and paid its CEO total annual compensation worth US$1.7m over the year to December 2022. That's a notable decrease of 29% on last year. Notably, the salary which is US$865.7k, represents a considerable chunk of the total compensation being paid.
In comparison with other companies in the American Medical Equipment industry with market capitalizations under US$200m, the reported median total CEO compensation was US$717k. Hence, we can conclude that Ken Londoner is remunerated higher than the industry median. Furthermore, Ken Londoner directly owns US$798k worth of shares in the company.
Component | 2022 | 2021 | Proportion (2022) |
Salary | US$866k | US$840k | 52% |
Other | US$806k | US$1.5m | 48% |
Total Compensation | US$1.7m | US$2.4m | 100% |
On an industry level, roughly 27% of total compensation represents salary and 73% is other remuneration. BioSig Technologies pays out 52% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at BioSig Technologies, Inc.'s Growth Numbers
BioSig Technologies, Inc.'s earnings per share (EPS) grew 50% per year over the last three years. Its revenue is down 11% over the previous year.
Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has BioSig Technologies, Inc. Been A Good Investment?
The return of -94% over three years would not have pleased BioSig Technologies, Inc. shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
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. We did our research and identified 6 warning signs (and 4 which are concerning) in BioSig Technologies we think you should know about.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.
