Perma-Fix Environmental Services, Inc.'s (NASDAQ:PESI) CEO Will Probably Have Their Compensation Approved By Shareholders

The performance at Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) has been quite strong recently and CEO Mark Duff has played a role in it. Coming up to the next AGM on 20 July 2021, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for Perma-Fix Environmental Services

How Does Total Compensation For Mark Duff Compare With Other Companies In The Industry?

At the time of writing, our data shows that Perma-Fix Environmental Services, Inc. has a market capitalization of US$81m, and reported total annual CEO compensation of US$481k for the year to December 2020. That's a fairly small increase of 4.0% over the previous year. Notably, the salary which is US$344.4k, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$508k. From this we gather that Mark Duff is paid around the median for CEOs in the industry. What's more, Mark Duff holds US$121k worth of shares in the company in their own name.

Component	2020	2019	Proportion (2020)
Salary	US$344k	US$287k	72%
Other	US$137k	US$176k	28%
Total Compensation	US$481k	US$463k	100%

Talking in terms of the industry, salary represented approximately 25% of total compensation out of all the companies we analyzed, while other remuneration made up 75% of the pie. Perma-Fix Environmental Services is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Perma-Fix Environmental Services, Inc.'s Growth

Perma-Fix Environmental Services, Inc.'s earnings per share (EPS) grew 76% per year over the last three years. In the last year, its revenue is up 20%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Perma-Fix Environmental Services, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Perma-Fix Environmental Services, Inc. for providing a total return of 56% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Perma-Fix Environmental Services that you should be aware of before investing.

Important note: Perma-Fix Environmental Services 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.

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