Most Shareholders Will Probably Find That The Compensation For Sintx Technologies, Inc.'s (NASDAQ:SINT) CEO Is Reasonable

Performance at Sintx Technologies, Inc. (NASDAQ:SINT) has been rather uninspiring recently and shareholders may be wondering how CEO B. Bal plans to fix this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 15 December 2022. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

Check out the opportunities and risks within the US Medical Equipment industry.

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

At the time of writing, our data shows that Sintx Technologies, Inc. has a market capitalization of US$5.4m, and reported total annual CEO compensation of US$483k for the year to December 2021. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is US$400.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$896k. Accordingly, Sintx Technologies pays its CEO under the industry median.

Component	2021	2020	Proportion (2021)
Salary	US$400k	US$415k	83%
Other	US$83k	US$72k	17%
Total Compensation	US$483k	US$487k	100%

On an industry level, around 19% of total compensation represents salary and 81% is other remuneration. It's interesting to note that Sintx Technologies pays out a greater portion of remuneration through salary, compared to the industry. 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.

Sintx Technologies, Inc.'s Growth

Over the past three years, Sintx Technologies, Inc. has seen its earnings per share (EPS) grow by 104% per year. It achieved revenue growth of 73% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent 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?

Few Sintx Technologies, Inc. shareholders would feel satisfied with the return of -93% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The fact that shareholders have earned a negative share price return is certainly disconcerting. This diverges with the robust growth in EPS, suggesting that there is a large discrepancy between share price and fundamentals. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 6 warning signs (and 4 which can't be ignored) in Sintx Technologies we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.