Here's Why Shareholders May Want To Be Cautious With Increasing Tilray Brands, Inc.'s (NASDAQ:TLRY) CEO Pay Packet

Key Insights

• Tilray Brands to hold its Annual General Meeting on 19th of December
• Total pay for CEO Irwin Simon includes US$1.89m salary
• The overall pay is 135% above the industry average
• Tilray Brands' EPS declined by 4.4% over the past three years while total shareholder loss over the past three years was 85%

The underwhelming share price performance of Tilray Brands, Inc. (NASDAQ:TLRY) in the past three years would have disappointed many shareholders. Per share earnings growth is also lacking, despite revenue growth. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 19th of December, where they can impact on future company performance by voting on resolutions, including executive compensation. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.

View our latest analysis for Tilray Brands

How Does Total Compensation For Irwin Simon Compare With Other Companies In The Industry?

According to our data, Tilray Brands, Inc. has a market capitalization of US$1.1b, and paid its CEO total annual compensation worth US$10m over the year to May 2024. We note that's a decrease of 35% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.9m.

In comparison with other companies in the American Pharmaceuticals industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$4.3m. This suggests that Irwin Simon is paid more than the median for the industry. What's more, Irwin Simon holds US$3.9m worth of shares in the company in their own name.

Component	2024	2023	Proportion (2024)
Salary	US$1.9m	US$1.8m	19%
Other	US$8.3m	US$14m	81%
Total Compensation	US$10m	US$16m	100%

Speaking on an industry level, nearly 28% of total compensation represents salary, while the remainder of 72% is other remuneration. Tilray Brands pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Tilray Brands, Inc.'s Growth

Over the last three years, Tilray Brands, Inc. has shrunk its earnings per share by 4.4% per year. Its revenue is up 25% over the last year.

The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Tilray Brands, Inc. Been A Good Investment?

Few Tilray Brands, Inc. shareholders would feel satisfied with the return of -85% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Tilray Brands that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.