It's Unlikely That The CEO Of Sintx Technologies, Inc. (NASDAQ:SINT) Will See A Huge Pay Rise This Year

Key Insights

• Sintx Technologies' Annual General Meeting to take place on 5th of December
• CEO B. Bal's total compensation includes salary of US$400.0k
• The overall pay is comparable to the industry average
• Over the past three years, Sintx Technologies' EPS grew by 64% and over the past three years, the total loss to shareholders 100%

The underwhelming share price performance of Sintx Technologies, Inc. (NASDAQ:SINT) in the past three years would have disappointed many shareholders. 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 5th of December. They could also influence management through voting on resolutions such as executive remuneration. 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 Sintx Technologies

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

Our data indicates that Sintx Technologies, Inc. has a market capitalization of US$1.7m, and total annual CEO compensation was reported as US$512k for the year to December 2022. That's a modest increase of 5.9% on the prior year. Notably, the salary which is US$400.0k, represents most of the total compensation being paid.

In comparison with other companies in the American Medical Equipment industry with market capitalizations under US$200m, the reported median total CEO compensation was US$715k. So it looks like Sintx Technologies compensates B. Bal in line with the median for the industry.

Component	2022	2021	Proportion (2022)
Salary	US$400k	US$400k	78%
Other	US$112k	US$83k	22%
Total Compensation	US$512k	US$483k	100%

On an industry level, roughly 27% of total compensation represents salary and 73% is other remuneration. Sintx Technologies pays out 78% 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 Sintx Technologies, Inc.'s Growth Numbers

Sintx Technologies, Inc. has seen its earnings per share (EPS) increase by 64% a year over the past three years. It achieved revenue growth of 159% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Sintx Technologies, Inc. Been A Good Investment?

With a total shareholder return of -100% over three years, Sintx 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...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. 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. That's why we did our research, and identified 7 warning signs for Sintx Technologies (of which 4 are a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

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.