Yahoo Finance It Looks Like KORU Medical Systems, Inc.'s (NASDAQ:KRMD) CEO May Expect Their Salary To Be Put Under The Microscope
Key Insights
KORU Medical Systems to hold its Annual General Meeting on 9th of May
Salary of US$563.1k is part of CEO Linda Tharby's total remuneration
The overall pay is comparable to the industry average
KORU Medical Systems' EPS declined by 43% over the past three years while total shareholder loss over the past three years was 32%
KORU Medical Systems, Inc. (NASDAQ:KRMD) has not performed well recently and CEO Linda Tharby will probably need to up their game. At the upcoming AGM on 9th of May, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.
Check out our latest analysis for KORU Medical Systems
How Does Total Compensation For Linda Tharby Compare With Other Companies In The Industry?
At the time of writing, our data shows that KORU Medical Systems, Inc. has a market capitalization of US$105m, and reported total annual CEO compensation of US$713k for the year to December 2023. We note that's a decrease of 29% compared to last year. In particular, the salary of US$563.1k, 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$672k. So it looks like KORU Medical Systems compensates Linda Tharby in line with the median for the industry. What's more, Linda Tharby holds US$4.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$563k | US$550k | 79% |
Other | US$150k | US$453k | 21% |
Total Compensation | US$713k | US$1.0m | 100% |
On an industry level, around 26% of total compensation represents salary and 74% is other remuneration. It's interesting to note that KORU Medical Systems pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
KORU Medical Systems, Inc.'s Growth
Over the last three years, KORU Medical Systems, Inc. has shrunk its earnings per share by 43% per year. The trailing twelve months of revenue was pretty much the same as the prior period.
The decline in EPS is a bit concerning. And the flat revenue hardly impresses. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 KORU Medical Systems, Inc. Been A Good Investment?
With a total shareholder return of -32% over three years, KORU Medical Systems, Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for KORU Medical Systems that investors should be aware of in a dynamic business environment.
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.
