Amesite Inc.'s (NASDAQ:AMST) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights

• Amesite's Annual General Meeting to take place on 18th of January
• CEO Ann Sastry's total compensation includes salary of US$550.0k
• The overall pay is comparable to the industry average
• Over the past three years, Amesite's EPS grew by 43% and over the past three years, the total loss to shareholders 95%

The underwhelming share price performance of Amesite Inc. (NASDAQ:AMST) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 18th of January could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for Amesite

Comparing Amesite Inc.'s CEO Compensation With The Industry

Our data indicates that Amesite Inc. has a market capitalization of US$8.2m, and total annual CEO compensation was reported as US$550k for the year to June 2023. Notably, that's a decrease of 21% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth US$550k.

In comparison with other companies in the American Consumer Services industry with market capitalizations under US$200m, the reported median total CEO compensation was US$454k. From this we gather that Ann Sastry is paid around the median for CEOs in the industry. What's more, Ann Sastry holds US$1.6m worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	US$550k	US$550k	100%
Other	-	US$150k	-
Total Compensation	US$550k	US$700k	100%

On an industry level, around 17% of total compensation represents salary and 83% is other remuneration. On a company level, Amesite prefers to reward its CEO through a salary, opting not to pay Ann Sastry through non-salary benefits. 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 Amesite Inc.'s Growth Numbers

Amesite Inc. has seen its earnings per share (EPS) increase by 43% a year over the past three years. Its revenue is down 25% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Amesite Inc. Been A Good Investment?

The return of -95% over three years would not have pleased Amesite Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Amesite rewards its CEO solely through a salary, ignoring non-salary benefits completely. Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 4 warning signs for Amesite you should be aware of, and 3 of them are a bit unpleasant.

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.

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

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.