This Is Why We Think Moxian, Inc.'s (NASDAQ:MOXC) CEO Might Get A Pay Rise Approved By Shareholders

Shareholders will be pleased by the robust performance of Moxian, Inc. (NASDAQ:MOXC) recently and this will be kept in mind in the upcoming AGM on 25 June 2021. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

See our latest analysis for Moxian

Comparing Moxian, Inc.'s CEO Compensation With the industry

Our data indicates that Moxian, Inc. has a market capitalization of US$228m, and total annual CEO compensation was reported as US$120k for the year to September 2020. This was the same amount the CEO received in the prior year. In particular, the salary of US$60.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between US$100m and US$400m had a median total CEO compensation of US$232k. In other words, Moxian pays its CEO lower than the industry median. What's more, Qinghu Hao holds US$5.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	US$60k	US$60k	50%
Other	US$60k	US$60k	50%
Total Compensation	US$120k	US$120k	100%

Speaking on an industry level, nearly 25% of total compensation represents salary, while the remainder of 75% is other remuneration. Moxian pays out 50% of remuneration in the form of a salary, significantly higher than the industry average.

Moxian, Inc.'s Growth

Moxian, Inc. has seen its earnings per share (EPS) increase by 102% a year over the past three years. In the last year, its revenue is up 6.7%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Moxian, Inc. Been A Good Investment?

Moxian, Inc. has served shareholders reasonably well, with a total return of 18% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

The company's overall performance, while not bad, could be better. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 3 warning signs for Moxian (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.

Important note: Moxian 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.

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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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