Shareholders May Be More Conservative With BioSig Technologies, Inc.'s (NASDAQ:BSGM) CEO Compensation For Now

Key Insights

• BioSig Technologies will host its Annual General Meeting on 18th of December
• Salary of US$865.7k is part of CEO Ken Londoner's total remuneration
• The overall pay is 133% above the industry average
• BioSig Technologies' EPS grew by 50% over the past three years while total shareholder loss over the past three years was 94%

In the past three years, the share price of BioSig Technologies, Inc. (NASDAQ:BSGM) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 18th of December. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

View our latest analysis for BioSig Technologies

How Does Total Compensation For Ken Londoner Compare With Other Companies In The Industry?

Our data indicates that BioSig Technologies, Inc. has a market capitalization of US$26m, and total annual CEO compensation was reported as US$1.7m for the year to December 2022. That's a notable decrease of 29% on last year. We note that the salary of US$865.7k makes up a sizeable portion of the total compensation received by the CEO.

On comparing similar-sized companies in the American Medical Equipment industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$717k. Accordingly, our analysis reveals that BioSig Technologies, Inc. pays Ken Londoner north of the industry median. Furthermore, Ken Londoner directly owns US$798k worth of shares in the company.

Component	2022	2021	Proportion (2022)
Salary	US$866k	US$840k	52%
Other	US$806k	US$1.5m	48%
Total Compensation	US$1.7m	US$2.4m	100%

On an industry level, roughly 27% of total compensation represents salary and 73% is other remuneration. BioSig Technologies pays out 52% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at BioSig Technologies, Inc.'s Growth Numbers

BioSig Technologies, Inc. has seen its earnings per share (EPS) increase by 50% a year over the past three years. It saw its revenue drop 11% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 BioSig Technologies, Inc. Been A Good Investment?

Few BioSig Technologies, Inc. shareholders would feel satisfied with the return of -94% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

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 6 warning signs for BioSig Technologies you should be aware of, and 4 of them shouldn't be ignored.

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.