We Discuss Why Apyx Medical Corporation's (NASDAQ:APYX) CEO Compensation May Be Closely Reviewed

Key Insights

• Apyx Medical will host its Annual General Meeting on 8th of August
• Salary of US$482.5k is part of CEO Charlie Goodwin's total remuneration
• The total compensation is 94% higher than the average for the industry
• Apyx Medical's EPS declined by 11% over the past three years while total shareholder loss over the past three years was 85%

The results at Apyx Medical Corporation (NASDAQ:APYX) have been quite disappointing recently and CEO Charlie Goodwin bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 8th of August. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Apyx Medical

How Does Total Compensation For Charlie Goodwin Compare With Other Companies In The Industry?

According to our data, Apyx Medical Corporation has a market capitalization of US$47m, and paid its CEO total annual compensation worth US$1.3m over the year to December 2023. That's a notable decrease of 42% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$483k.

For comparison, other companies in the American Medical Equipment industry with market capitalizations below US$200m, reported a median total CEO compensation of US$649k. Accordingly, our analysis reveals that Apyx Medical Corporation pays Charlie Goodwin north of the industry median. What's more, Charlie Goodwin holds US$122k worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	US$483k	US$483k	38%
Other	US$779k	US$1.7m	62%
Total Compensation	US$1.3m	US$2.2m	100%

Talking in terms of the industry, salary represented approximately 24% of total compensation out of all the companies we analyzed, while other remuneration made up 76% of the pie. Apyx Medical pays out 38% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Apyx Medical Corporation's Growth Numbers

Over the last three years, Apyx Medical Corporation has shrunk its earnings per share by 11% per year. It achieved revenue growth of 14% over the last year.

Overall this is not a very positive result for shareholders. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Apyx Medical Corporation Been A Good Investment?

With a total shareholder return of -85% over three years, Apyx Medical Corporation shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

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, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Apyx Medical that investors should look into moving forward.

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.

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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