Yahoo Finance Here's Why We Think Zynex, Inc.'s (NASDAQ:ZYXI) CEO Compensation Looks Fair
Key Insights
Zynex's Annual General Meeting to take place on 16th of May
Total pay for CEO Thomas Sandgaard includes US$650.0k salary
Total compensation is 67% below industry average
Zynex's three-year loss to shareholders was 15% while its EPS grew by 21% over the past three years
Performance at Zynex, Inc. (NASDAQ:ZYXI) has been rather uninspiring recently and shareholders may be wondering how CEO Thomas Sandgaard plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 16th of May. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.
Check out our latest analysis for Zynex
How Does Total Compensation For Thomas Sandgaard Compare With Other Companies In The Industry?
At the time of writing, our data shows that Zynex, Inc. has a market capitalization of US$341m, and reported total annual CEO compensation of US$1.2m for the year to December 2023. Notably, that's a decrease of 10% over the year before. In particular, the salary of US$650.0k, makes up a fairly large portion of the total compensation being paid to the CEO.
On examining similar-sized companies in the American Medical Equipment industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$3.7m. Accordingly, Zynex pays its CEO under the industry median. Furthermore, Thomas Sandgaard directly owns US$166m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$650k | US$575k | 53% |
Other | US$568k | US$784k | 47% |
Total Compensation | US$1.2m | US$1.4m | 100% |
On an industry level, roughly 25% of total compensation represents salary and 75% is other remuneration. According to our research, Zynex has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Zynex, Inc.'s Growth Numbers
Zynex, Inc. has seen its earnings per share (EPS) increase by 21% a year over the past three years. Its revenue is up 11% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Zynex, Inc. Been A Good Investment?
Given the total shareholder loss of 15% over three years, many shareholders in Zynex, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Despite the strong EPS growth recently, the share price has not performed to expectations and it suggests that other factors might be driving it, apart from fundamentals. Shareholders will get the chance to question the board on key concerns and revisit their investment thesis with regards to the company.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Zynex that investors should look into moving forward.
Important note: Zynex 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.
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.
