We Think Shareholders Are Less Likely To Approve A Pay Rise For Sintx Technologies, Inc.'s (NASDAQ:SINT) CEO For Now
Key Insights
Sintx Technologies' Annual General Meeting to take place on 5th of December
Salary of US$400.0k is part of CEO B. Bal's total remuneration
Total compensation is similar to the industry average
Sintx Technologies' three-year loss to shareholders was 100% while its EPS grew by 64% over the past three years
The underwhelming share price performance of Sintx Technologies, Inc. (NASDAQ:SINT) in the past three years would have disappointed many shareholders. 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 5th 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. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
Check out our latest analysis for Sintx Technologies
How Does Total Compensation For B. Bal Compare With Other Companies In The Industry?
At the time of writing, our data shows that Sintx Technologies, Inc. has a market capitalization of US$1.7m, and reported total annual CEO compensation of US$512k for the year to December 2022. That's a fairly small increase of 5.9% over the previous year. In particular, the salary of US$400.0k, 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. From this we gather that B. Bal is paid around the median for CEOs in the industry.
Component | 2022 | 2021 | Proportion (2022) |
Salary | US$400k | US$400k | 78% |
Other | US$112k | US$83k | 22% |
Total Compensation | US$512k | US$483k | 100% |
Speaking on an industry level, nearly 27% of total compensation represents salary, while the remainder of 73% is other remuneration. According to our research, Sintx Technologies has allocated a higher percentage of pay to salary in comparison to the wider 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.
Sintx Technologies, Inc.'s Growth
Over the past three years, Sintx Technologies, Inc. has seen its earnings per share (EPS) grow by 64% per year. Its revenue is up 159% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Sintx Technologies, Inc. Been A Good Investment?
Few Sintx Technologies, Inc. shareholders would feel satisfied with the return of -100% over three years. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
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 be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line 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 7 warning signs for Sintx Technologies (of which 4 are a bit concerning!) that you should know about in order to have a holistic understanding of the stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.
