Shareholders Will Probably Hold Off On Increasing OraSure Technologies, Inc.'s (NASDAQ:OSUR) CEO Compensation For The Time Being
Key Insights
- OraSure Technologies will host its Annual General Meeting on 14th of May
- Total pay for CEO Carrie Eglinton Manner includes US$721.0k salary
- Total compensation is 121% above industry average
- OraSure Technologies' three-year loss to shareholders was 46% while its EPS grew by 66% over the past three years
In the past three years, the share price of OraSure Technologies, Inc. (NASDAQ:OSUR) 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. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 14th of May. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
Check out our latest analysis for OraSure Technologies
How Does Total Compensation For Carrie Eglinton Manner Compare With Other Companies In The Industry?
According to our data, OraSure Technologies, Inc. has a market capitalization of US$217m, and paid its CEO total annual compensation worth US$5.6m over the year to December 2024. That's a notable decrease of 16% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$721k.
For comparison, other companies in the American Medical Equipment industry with market capitalizations ranging between US$100m and US$400m had a median total CEO compensation of US$2.5m. This suggests that Carrie Eglinton Manner is paid more than the median for the industry. What's more, Carrie Eglinton Manner holds US$4.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2024 | 2023 | Proportion (2024) |
Salary | US$721k | US$721k | 13% |
Other | US$4.9m | US$6.0m | 87% |
Total Compensation | US$5.6m | US$6.7m | 100% |
Speaking on an industry level, nearly 25% of total compensation represents salary, while the remainder of 75% is other remuneration. OraSure Technologies sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at OraSure Technologies, Inc.'s Growth Numbers
OraSure Technologies, Inc. has seen its earnings per share (EPS) increase by 66% a year over the past three years. Its revenue is down 54% over the previous year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has OraSure Technologies, Inc. Been A Good Investment?
With a total shareholder return of -46% over three years, OraSure Technologies, Inc. shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.
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. 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.
Shareholders may want to check for free if OraSure Technologies insiders are buying or selling shares.
Switching gears from OraSure 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.
Valuation is complex, but we're here to simplify it.
Discover if OraSure Technologies might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.