We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Natural Alternatives International, Inc.'s (NASDAQ:NAII) CEO For Now

Under the guidance of CEO Mark LeDoux, Natural Alternatives International, Inc. (NASDAQ:NAII) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 02 December 2022. However, some shareholders may still want to keep CEO compensation within reason.

Check out the opportunities and risks within the US Personal Products industry.

Comparing Natural Alternatives International, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Natural Alternatives International, Inc. has a market capitalization of US$47m, and reported total annual CEO compensation of US$954k for the year to June 2022. This means that the compensation hasn't changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$473k.

On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$296k. Hence, we can conclude that Mark LeDoux is remunerated higher than the industry median. Moreover, Mark LeDoux also holds US$7.6m worth of Natural Alternatives International stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2022	2021	Proportion (2022)
Salary	US$473k	US$425k	50%
Other	US$482k	US$527k	50%
Total Compensation	US$954k	US$952k	100%

Talking in terms of the industry, salary represented approximately 35% of total compensation out of all the companies we analyzed, while other remuneration made up 65% of the pie. Natural Alternatives International pays out 50% of remuneration in the form of a salary, significantly higher than the industry average. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Natural Alternatives International, Inc.'s Growth

Natural Alternatives International, Inc. has seen its earnings per share (EPS) increase by 33% a year over the past three years. The trailing twelve months of revenue was pretty much the same as the prior period.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Natural Alternatives International, Inc. Been A Good Investment?

Natural Alternatives International, Inc. has not done too badly by shareholders, with a total return of 0.5%, over three years. It would be nice to see that metric improve in the future. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Natural Alternatives International 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.