Increases to CEO Compensation Might Be Put On Hold For Now at Evolus, Inc. (NASDAQ:EOLS)
Key Insights
- Evolus to hold its Annual General Meeting on 5th of June
- Salary of US$743.8k is part of CEO David Moatazedi's total remuneration
- Total compensation is 67% above industry average
- Evolus' three-year loss to shareholders was 32% while its EPS grew by 18% over the past three years
In the past three years, the share price of Evolus, Inc. (NASDAQ:EOLS) has struggled to grow and now shareholders are sitting on a loss. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 5th of June could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
Check out our latest analysis for Evolus
How Does Total Compensation For David Moatazedi Compare With Other Companies In The Industry?
According to our data, Evolus, Inc. has a market capitalization of US$600m, and paid its CEO total annual compensation worth US$7.0m over the year to December 2024. Notably, that's a decrease of 38% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$744k.
On examining similar-sized companies in the American Pharmaceuticals industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$4.2m. Accordingly, our analysis reveals that Evolus, Inc. pays David Moatazedi north of the industry median. What's more, David Moatazedi holds US$1.2m worth of shares in the company in their own name.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$744k | US$688k | 11% |
| Other | US$6.3m | US$11m | 89% |
| Total Compensation | US$7.0m | US$11m | 100% |
Speaking on an industry level, nearly 27% of total compensation represents salary, while the remainder of 73% is other remuneration. Evolus 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.
Evolus, Inc.'s Growth
Evolus, Inc.'s earnings per share (EPS) grew 18% per year over the last three years. Its revenue is up 25% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Evolus, Inc. Been A Good Investment?
The return of -32% over three years would not have pleased Evolus, Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which shouldn't be ignored) in Evolus we think you should know about.
Important note: Evolus is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
Valuation is complex, but we're here to simplify it.
Discover if Evolus might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.