Shareholders Will Probably Hold Off On Increasing ThermoGenesis Holdings, Inc.'s (NASDAQ:THMO) CEO Compensation For The Time Being
Key Insights
ThermoGenesis Holdings will host its Annual General Meeting on 14th of December
Salary of US$519.0k is part of CEO Chris Xu's total remuneration
Total compensation is similar to the industry average
ThermoGenesis Holdings' EPS grew by 79% over the past three years while total shareholder loss over the past three years was 99%
In the past three years, the share price of ThermoGenesis Holdings, Inc. (NASDAQ:THMO) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 14th of December could be an opportunity for shareholders to bring these concerns to the board's attention. 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.
Check out our latest analysis for ThermoGenesis Holdings
How Does Total Compensation For Chris Xu Compare With Other Companies In The Industry?
At the time of writing, our data shows that ThermoGenesis Holdings, Inc. has a market capitalization of US$2.9m, and reported total annual CEO compensation of US$699k for the year to December 2022. We note that's a small decrease of 6.6% on last year. In particular, the salary of US$519.0k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the American Medical Equipment industry with market capitalizations below US$200m, reported a median total CEO compensation of US$715k. So it looks like ThermoGenesis Holdings compensates Chris Xu in line with the median for the industry.
Component | 2022 | 2021 | Proportion (2022) |
Salary | US$519k | US$500k | 74% |
Other | US$180k | US$248k | 26% |
Total Compensation | US$699k | US$748k | 100% |
Speaking on an industry level, nearly 27% of total compensation represents salary, while the remainder of 73% is other remuneration. ThermoGenesis Holdings is paying a higher share of its remuneration through a salary in comparison to the overall industry. 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.
ThermoGenesis Holdings, Inc.'s Growth
Over the past three years, ThermoGenesis Holdings, Inc. has seen its earnings per share (EPS) grow by 79% per year. In the last year, its revenue is down 5.0%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has ThermoGenesis Holdings, Inc. Been A Good Investment?
Few ThermoGenesis Holdings, Inc. shareholders would feel satisfied with the return of -99% over three years. 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 stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. 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 pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for ThermoGenesis Holdings you should be aware of, and 2 of them are significant.
Important note: ThermoGenesis Holdings 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.
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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.
