Gino Pereira became the CEO of Nxt-ID Inc (NASDAQ:NXTD) in 2012. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Gino Pereira’s Compensation Compare With Similar Sized Companies?
According to our data, Nxt-ID Inc has a market capitalization of US$29m, and pays its CEO total annual compensation worth US$507k. That’s a fairly small increase of 3.5% on year before. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$293k.
It would therefore appear that Nxt-ID Inc pays Gino Pereira more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Nxt-ID, below.
Is Nxt-ID Inc Growing?
Over the last three years Nxt-ID Inc has grown its earnings per share (EPS) by an average of 68% per year. Its revenue is down -13% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Nxt-ID Inc Been A Good Investment?
Given the total loss of 80% over three years, many shareholders in Nxt-ID Inc are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by Nxt-ID Inc, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. So you may want to check if insiders are buying Nxt-ID Inc shares with their own money (free access).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.