Here's Why It's Unlikely That Zynex, Inc.'s (NASDAQ:ZYXI) CEO Will See A Pay Rise This Year

Key Insights

• Zynex will host its Annual General Meeting on 15th of May
• CEO Thomas Sandgaard's total compensation includes salary of US$700.0k
• Total compensation is 56% above industry average
• Over the past three years, Zynex's EPS fell by 59% and over the past three years, the total loss to shareholders 68%

We've discovered 3 warning signs about Zynex. View them for free.

Zynex, Inc. (NASDAQ:ZYXI) has not performed well recently and CEO Thomas Sandgaard will probably need to up their game. At the upcoming AGM on 15th of May, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for Zynex

Comparing Zynex, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Zynex, Inc. has a market capitalization of US$63m, and reported total annual CEO compensation of US$992k for the year to December 2024. We note that's a decrease of 19% compared to last year. Notably, the salary which is US$700.0k, 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$636k. This suggests that Thomas Sandgaard is paid more than the median for the industry. Furthermore, Thomas Sandgaard directly owns US$30m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$700k	US$650k	71%
Other	US$292k	US$568k	29%
Total Compensation	US$992k	US$1.2m	100%

On an industry level, roughly 25% of total compensation represents salary and 75% is other remuneration. It's interesting to note that Zynex pays out a greater portion of remuneration through salary, compared to the industry. 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 Zynex, Inc.'s Growth Numbers

Zynex, Inc. has reduced its earnings per share by 59% a year over the last three years. It saw its revenue drop 8.6% over the last year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Zynex, Inc. Been A Good Investment?

Few Zynex, Inc. shareholders would feel satisfied with the return of -68% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 2 which are a bit unpleasant) in Zynex we think you should know about.

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.