It Looks Like FIGS, Inc.'s (NYSE:FIGS) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• FIGS to hold its Annual General Meeting on 4th of June
• CEO Trina Spear's total compensation includes salary of US$1.00m
• The overall pay is comparable to the industry average
• Over the past three years, FIGS' EPS fell by 18% and over the past three years, the total loss to shareholders 50%

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FIGS, Inc. (NYSE:FIGS) has not performed well recently and CEO Trina Spear will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 4th of June. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for FIGS

Comparing FIGS, Inc.'s CEO Compensation With The Industry

According to our data, FIGS, Inc. has a market capitalization of US$722m, and paid its CEO total annual compensation worth US$5.0m over the year to December 2024. That's a notable decrease of 41% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.

On examining similar-sized companies in the American Luxury industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$6.0m. From this we gather that Trina Spear is paid around the median for CEOs in the industry. Furthermore, Trina Spear directly owns US$29m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 17% of total compensation represents salary and 83% is other remuneration. FIGS is paying a higher share of its remuneration through a salary in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

FIGS, Inc.'s Growth

Over the last three years, FIGS, Inc. has shrunk its earnings per share by 18% per year. In the last year, its revenue is up 3.0%.

Overall this is not a very positive result for shareholders. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 FIGS, Inc. Been A Good Investment?

Few FIGS, Inc. shareholders would feel satisfied with the return of -50% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for FIGS that investors should be aware of in a dynamic business environment.

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.