It's Probably Less Likely That Nyxoah S.A.'s (EBR:NYXH) CEO Will See A Huge Pay Rise This Year

Key Insights

• Nyxoah will host its Annual General Meeting on 12th of June
• Total pay for CEO Olivier Taelman includes €436.4k salary
• The total compensation is similar to the average for the industry
• Over the past three years, Nyxoah's EPS fell by 20% and over the past three years, the total loss to shareholders 63%

Shareholders of Nyxoah S.A. (EBR:NYXH) will have been dismayed by the negative share price return over the last three years. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 12th of June, where they can impact on future company performance by voting on resolutions, including executive compensation. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

View our latest analysis for Nyxoah

Comparing Nyxoah S.A.'s CEO Compensation With The Industry

At the time of writing, our data shows that Nyxoah S.A. has a market capitalization of €286m, and reported total annual CEO compensation of €807k for the year to December 2023. We note that's an increase of 28% above last year. In particular, the salary of €436.4k, makes up a fairly large portion of the total compensation being paid to the CEO.

In comparison with other companies in the Belgium Medical Equipment industry with market capitalizations ranging from €184m to €735m, the reported median CEO total compensation was €816k. This suggests that Nyxoah remunerates its CEO largely in line with the industry average.

Component	2023	2022	Proportion (2023)
Salary	€436k	€436k	54%
Other	€371k	€195k	46%
Total Compensation	€807k	€631k	100%

Speaking on an industry level, nearly 56% of total compensation represents salary, while the remainder of 44% is other remuneration. Nyxoah is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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.

Nyxoah S.A.'s Growth

Over the last three years, Nyxoah S.A. has shrunk its earnings per share by 20% per year. In the last year, its revenue is up 79%.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Nyxoah S.A. Been A Good Investment?

The return of -63% over three years would not have pleased Nyxoah S.A. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. Shareholders will get the chance at the upcoming AGM to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which makes us a bit uncomfortable) in Nyxoah we think you should know about.

Switching gears from Nyxoah, 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.

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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.