Shareholders May Not Be So Generous With BioSig Technologies, Inc.'s (NASDAQ:BSGM) CEO Compensation And Here's Why

Shareholders of BioSig Technologies, Inc. (NASDAQ:BSGM) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 20 December 2022. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for BioSig Technologies

Comparing BioSig Technologies, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that BioSig Technologies, Inc. has a market capitalization of US$22m, and reported total annual CEO compensation of US$2.4m for the year to December 2021. Notably, that's a decrease of 25% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$840k.

In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$875k. Hence, we can conclude that Ken Londoner is remunerated higher than the industry median. Furthermore, Ken Londoner directly owns US$965k worth of shares in the company.

Component	2021	2020	Proportion (2021)
Salary	US$840k	US$742k	36%
Other	US$1.5m	US$2.4m	64%
Total Compensation	US$2.4m	US$3.2m	100%

On an industry level, roughly 19% of total compensation represents salary and 81% is other remuneration. It's interesting to note that BioSig Technologies 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.

BioSig Technologies, Inc.'s Growth

BioSig Technologies, Inc.'s earnings per share (EPS) grew 27% per year over the last three years. Its revenue is down 63% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few 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?

With a total shareholder return of -93% over three years, BioSig Technologies, Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

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. 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 5 warning signs for BioSig Technologies you should be aware of, and 2 of them shouldn't be ignored.

Switching gears from BioSig Technologies, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.