We Think The Compensation For BIO-key International, Inc.'s (NASDAQ:BKYI) CEO Looks About Right

Key Insights

• BIO-key International's Annual General Meeting to take place on 8th of August
• CEO Mike DePasquale's total compensation includes salary of US$285.0k
• Total compensation is 45% below industry average
• Over the past three years, BIO-key International's EPS grew by 44% and over the past three years, the total loss to shareholders 98%

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The performance at BIO-key International, Inc. (NASDAQ:BKYI) has been rather lacklustre of late and shareholders may be wondering what CEO Mike DePasquale is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 8th of August. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.

View our latest analysis for BIO-key International

How Does Total Compensation For Mike DePasquale Compare With Other Companies In The Industry?

According to our data, BIO-key International, Inc. has a market capitalization of US$5.5m, and paid its CEO total annual compensation worth US$309k over the year to December 2024. That's a modest increase of 6.2% on the prior year. Notably, the salary which is US$285.0k, represents most of the total compensation being paid.

For comparison, other companies in the American Software industry with market capitalizations below US$200m, reported a median total CEO compensation of US$566k. This suggests that Mike DePasquale is paid below the industry median.

On an industry level, roughly 10% of total compensation represents salary and 90% is other remuneration. BIO-key International is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at BIO-key International, Inc.'s Growth Numbers

BIO-key International, Inc.'s earnings per share (EPS) grew 44% per year over the last three years. It saw its revenue drop 18% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 BIO-key International, Inc. Been A Good Investment?

The return of -98% over three years would not have pleased BIO-key International, Inc. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The fact that shareholders are sitting on a loss is certainly disheartening. This diverges with the robust growth in EPS, suggesting that there is a large discrepancy between share price and fundamentals. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 4 warning signs for BIO-key International you should be aware of, and 3 of them are significant.

Important note: BIO-key International 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. 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.