Nu Skin Enterprises, Inc.'s (NYSE:NUS) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Nu Skin Enterprises' Annual General Meeting to take place on 5th of June
• Total pay for CEO Ryan Napierski includes US$991.9k salary
• Total compensation is 136% above industry average
• Nu Skin Enterprises' EPS declined by 69% over the past three years while total shareholder loss over the past three years was 76%

The results at Nu Skin Enterprises, Inc. (NYSE:NUS) have been quite disappointing recently and CEO Ryan Napierski bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 5th of June. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Nu Skin Enterprises

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

Our data indicates that Nu Skin Enterprises, Inc. has a market capitalization of US$663m, and total annual CEO compensation was reported as US$5.8m for the year to December 2023. We note that's an increase of 23% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$992k.

In comparison with other companies in the American Personal Products industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$2.5m. Accordingly, our analysis reveals that Nu Skin Enterprises, Inc. pays Ryan Napierski north of the industry median. Furthermore, Ryan Napierski directly owns US$1.4m worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	US$992k	US$942k	17%
Other	US$4.8m	US$3.8m	83%
Total Compensation	US$5.8m	US$4.8m	100%

On an industry level, around 54% of total compensation represents salary and 46% is other remuneration. Nu Skin Enterprises sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Nu Skin Enterprises, Inc.'s Growth Numbers

Over the last three years, Nu Skin Enterprises, Inc. has shrunk its earnings per share by 69% per year. It saw its revenue drop 9.4% 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. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Nu Skin Enterprises, Inc. Been A Good Investment?

The return of -76% over three years would not have pleased Nu Skin Enterprises, Inc. shareholders. 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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

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 Nu Skin Enterprises that investors should be aware of in a dynamic business environment.

Switching gears from Nu Skin Enterprises, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.