It's Unlikely That Biodesix, Inc.'s (NASDAQ:BDSX) CEO Will See A Huge Pay Rise This Year

Key Insights

• Biodesix's Annual General Meeting to take place on 20th of May
• Salary of US$588.9k is part of CEO Scott Hutton's total remuneration
• Total compensation is 150% above industry average
• Biodesix's EPS grew by 53% over the past three years while total shareholder loss over the past three years was 79%

Our free stock report includes 5 warning signs investors should be aware of before investing in Biodesix. Read for free now.

In the past three years, the share price of Biodesix, Inc. (NASDAQ:BDSX) has struggled to grow and now shareholders are sitting on a loss. 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 20th of May could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Biodesix

How Does Total Compensation For Scott Hutton Compare With Other Companies In The Industry?

At the time of writing, our data shows that Biodesix, Inc. has a market capitalization of US$52m, and reported total annual CEO compensation of US$2.1m for the year to December 2024. That's a notable decrease of 9.0% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$589k.

In comparison with other companies in the American Healthcare industry with market capitalizations under US$200m, the reported median total CEO compensation was US$834k. Hence, we can conclude that Scott Hutton is remunerated higher than the industry median. Furthermore, Scott Hutton directly owns US$256k worth of shares in the company.

Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. Biodesix pays out 28% 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 Biodesix, Inc.'s Growth Numbers

Biodesix, Inc. has seen its earnings per share (EPS) increase by 53% a year over the past three years. Its revenue is up 45% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Biodesix, Inc. Been A Good Investment?

Few Biodesix, Inc. shareholders would feel satisfied with the return of -79% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. 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.

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. That's why we did some digging and identified 5 warning signs for Biodesix that you should be aware of before investing.

Important note: Biodesix 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. 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.