Nanalysis Scientific Corp.'s (CVE:NSCI) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights

• Nanalysis Scientific's Annual General Meeting to take place on 26th of June
• Salary of CA$281.0k is part of CEO Sean Krakiwsky's total remuneration
• The overall pay is comparable to the industry average
• Nanalysis Scientific's three-year loss to shareholders was 57% while its EPS was down 57% over the past three years

In the past three years, the share price of Nanalysis Scientific Corp. (CVE:NSCI) has struggled to grow and now shareholders are sitting on a loss. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. Shareholders will have a chance to take their concerns to the board at the next AGM on 26th of June and vote on resolutions including executive compensation, which studies show may have an impact on company performance. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

View our latest analysis for Nanalysis Scientific

Comparing Nanalysis Scientific Corp.'s CEO Compensation With The Industry

At the time of writing, our data shows that Nanalysis Scientific Corp. has a market capitalization of CA$45m, and reported total annual CEO compensation of CA$326k for the year to December 2023. That is, the compensation was roughly the same as last year. In particular, the salary of CA$281.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Canada Medical Equipment industry with market capitalizations under CA$274m, the reported median total CEO compensation was CA$297k. This suggests that Nanalysis Scientific remunerates its CEO largely in line with the industry average. Moreover, Sean Krakiwsky also holds CA$524k worth of Nanalysis Scientific stock directly under their own name.

Speaking on an industry level, nearly 86% of total compensation represents salary, while the remainder of 14% is other remuneration. Our data reveals that Nanalysis Scientific allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Nanalysis Scientific Corp.'s Growth Numbers

Over the last three years, Nanalysis Scientific Corp. has shrunk its earnings per share by 57% per year. Its revenue is up 46% over the last year.

The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Nanalysis Scientific Corp. Been A Good Investment?

The return of -57% over three years would not have pleased Nanalysis Scientific Corp. shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 4 warning signs for Nanalysis Scientific (2 make us uncomfortable!) that you should be aware of before investing here.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com