What We Learned About Reliv' International's (NASDAQ:RELV) CEO Pay

Ryan Montgomery has been the CEO of Reliv' International, Inc. (NASDAQ:RELV) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Reliv' International pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Reliv' International

How Does Total Compensation For Ryan Montgomery Compare With Other Companies In The Industry?

According to our data, Reliv' International, Inc. has a market capitalization of US$6.5m, and paid its CEO total annual compensation worth US$219k over the year to December 2019. That's a notable increase of 11% on last year. Notably, the salary which is US$211.4k, 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$275k. This suggests that Reliv' International remunerates its CEO largely in line with the industry average. Moreover, Ryan Montgomery also holds US$378k worth of Reliv' International stock directly under their own name.

On an industry level, around 67% of total compensation represents salary and 33% is other remuneration. Reliv' International is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Reliv' International, Inc.'s Growth

Reliv' International, Inc.'s earnings per share (EPS) grew 40% per year over the last three years. In the last year, its revenue is down 3.0%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Reliv' International, Inc. Been A Good Investment?

Given the total shareholder loss of 19% over three years, many shareholders in Reliv' International, Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Reliv' International pays its CEO a majority of compensation through a salary. As we noted earlier, Reliv' International pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. But on the bright side, EPS growth is positive over the same period. Considering positive EPS growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Reliv' International that investors should be aware of in a dynamic business environment.

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. 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.
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