Ondas Holdings to hold its Annual General Meeting on 31st of October
Total pay for CEO Eric Brock includes US$200.0k salary
The total compensation is 72% less than the average for the industry
Ondas Holdings' three-year loss to shareholders was 97% while its EPS was down 41% over the past three years
Performance at Ondas Holdings Inc. (NASDAQ:ONDS) has been rather uninspiring recently and shareholders may be wondering how CEO Eric Brock plans to fix this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 31st of October. 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. We think CEO compensation looks appropriate given the data we have put together.
Comparing Ondas Holdings Inc.'s CEO Compensation With The Industry
Our data indicates that Ondas Holdings Inc. has a market capitalization of US$19m, and total annual CEO compensation was reported as US$228k for the year to December 2022. That is, the compensation was roughly the same as last year. Notably, the salary which is US$200.0k, represents most of the total compensation being paid.
On comparing similar-sized companies in the American Communications industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$824k. That is to say, Eric Brock is paid under the industry median. What's more, Eric Brock holds US$635k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
On an industry level, roughly 20% of total compensation represents salary and 80% is other remuneration. Ondas 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.
A Look at Ondas Holdings Inc.'s Growth Numbers
Over the last three years, Ondas Holdings Inc. has shrunk its earnings per share by 41% per year. Its revenue is up 391% over the last year.
Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Ondas Holdings Inc. Been A Good Investment?
Few Ondas Holdings Inc. shareholders would feel satisfied with the return of -97% over three years. So shareholders would probably want the company to be less generous with CEO compensation.
The loss to shareholders over the past three years is certainly concerning. The poor performance of the share price might have something to do with the lack of earnings growth. 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.
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 Ondas Holdings (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.
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.