This Is Why Aspira Women's Health Inc.'s (NASDAQ:AWH) CEO Can Expect A Bump Up In Their Pay Packet

Shareholders will probably not be disappointed by the robust results at Aspira Women's Health Inc. (NASDAQ:AWH) recently and they will be keeping this in mind as they go into the AGM on 22 June 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

See our latest analysis for Aspira Women's Health

How Does Total Compensation For Valerie Palmieri Compare With Other Companies In The Industry?

At the time of writing, our data shows that Aspira Women's Health Inc. has a market capitalization of US$664m, and reported total annual CEO compensation of US$952k for the year to December 2020. That's mostly flat as compared to the prior year's compensation. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$400k.

On comparing similar companies from the same industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$3.0m. This suggests that Valerie Palmieri is paid below the industry median. Furthermore, Valerie Palmieri directly owns US$1.3m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	US$400k	US$394k	42%
Other	US$552k	US$548k	58%
Total Compensation	US$952k	US$942k	100%

Speaking on an industry level, nearly 22% of total compensation represents salary, while the remainder of 78% is other remuneration. It's interesting to note that Aspira Women's Health pays out a greater portion of remuneration through salary, compared to the industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Aspira Women's Health Inc.'s Growth

Aspira Women's Health Inc.'s earnings per share (EPS) grew 3.2% per year over the last three years. In the last year, its revenue changed by just 0.6%.

We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Aspira Women's Health Inc. Been A Good Investment?

Most shareholders would probably be pleased with Aspira Women's Health Inc. for providing a total return of 499% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 5 warning signs for Aspira Women's Health (1 doesn't sit too well with us!) that you should be aware of before investing here.

Important note: Aspira Women's Health 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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This article by Simply Wall St is general in nature. 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.
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