It's Unlikely That BioSig Technologies, Inc.'s (NASDAQ:BSGM) CEO Will See A Huge Pay Rise This Year
Shareholders of BioSig Technologies, Inc. (NASDAQ:BSGM) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 20 December 2022. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
Check out our latest analysis for BioSig Technologies
Comparing BioSig Technologies, Inc.'s CEO Compensation With The Industry
Our data indicates that BioSig Technologies, Inc. has a market capitalization of US$22m, and total annual CEO compensation was reported as US$2.4m for the year to December 2021. That's a notable decrease of 25% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$840k.
In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$875k. This suggests that Ken Londoner is paid more than the median for the industry. Furthermore, Ken Londoner directly owns US$965k worth of shares in the company.
Component | 2021 | 2020 | Proportion (2021) |
Salary | US$840k | US$742k | 36% |
Other | US$1.5m | US$2.4m | 64% |
Total Compensation | US$2.4m | US$3.2m | 100% |
Speaking on an industry level, nearly 19% of total compensation represents salary, while the remainder of 81% is other remuneration. BioSig Technologies is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
BioSig Technologies, Inc.'s Growth
BioSig Technologies, Inc.'s earnings per share (EPS) grew 27% per year over the last three years. It saw its revenue drop 63% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has BioSig Technologies, Inc. Been A Good Investment?
With a total shareholder return of -93% over three years, BioSig Technologies, Inc. shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 5 warning signs (and 2 which don't sit too well with us) in BioSig Technologies we think you should know about.
Switching gears from BioSig Technologies, 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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