We Think Some Shareholders May Hesitate To Increase Nano-X Imaging Ltd.'s (NASDAQ:NNOX) CEO Compensation

Key Insights

• Nano-X Imaging to hold its Annual General Meeting on 10th of December
• Total pay for CEO Erez Meltzer includes US$904.0k salary
• The overall pay is comparable to the industry average
• Over the past three years, Nano-X Imaging's EPS grew by 9.4% and over the past three years, the total loss to shareholders 64%

In the past three years, the share price of Nano-X Imaging Ltd. (NASDAQ:NNOX) 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. The AGM coming up on the 10th of December 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. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for Nano-X Imaging

How Does Total Compensation For Erez Meltzer Compare With Other Companies In The Industry?

Our data indicates that Nano-X Imaging Ltd. has a market capitalization of US$352m, and total annual CEO compensation was reported as US$1.5m for the year to December 2023. That's a notable decrease of 50% on last year. In particular, the salary of US$904.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

In comparison with other companies in the American Healthcare industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$2.1m. From this we gather that Erez Meltzer is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	US$904k	US$904k	58%
Other	US$644k	US$2.2m	42%
Total Compensation	US$1.5m	US$3.1m	100%

Speaking on an industry level, nearly 21% of total compensation represents salary, while the remainder of 79% is other remuneration. Nano-X Imaging pays out 58% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Nano-X Imaging Ltd.'s Growth Numbers

Nano-X Imaging Ltd. has seen its earnings per share (EPS) increase by 9.4% a year over the past three years. Its revenue is up 11% over the last year.

We would argue that the modest growth in revenue is a notable positive. And the modest growth in EPS isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Nano-X Imaging Ltd. Been A Good Investment?

With a total shareholder return of -64% over three years, Nano-X Imaging Ltd. shareholders would by and large be disappointed. 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. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Nano-X Imaging that investors should look into moving forward.

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.