Our Take On Nxt-ID, Inc.'s (NASDAQ:NXTD) CEO Salary

In 2012 Gino Pereira was appointed CEO of Nxt-ID, Inc. (NASDAQ:NXTD). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Nxt-ID

How Does Gino Pereira's Compensation Compare With Similar Sized Companies?

Our data indicates that Nxt-ID, Inc. is worth US$27m, and total annual CEO compensation is US$1.1m. (This number is for the twelve months until December 2018). We note that's an increase of 122% above last year. We think total compensation is more important but we note that the CEO salary is lower, at US$420k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$434k.

It would therefore appear that Nxt-ID, Inc. pays Gino Pereira more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at Nxt-ID, below.

Is Nxt-ID, Inc. Growing?

On average over the last three years, Nxt-ID, Inc. has grown earnings per share (EPS) by 91% each year (using a line of best fit). In the last year, its revenue is up 6.7%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.

Has Nxt-ID, Inc. Been A Good Investment?

Given the total loss of 80% over three years, many shareholders in Nxt-ID, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We examined the amount Nxt-ID, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. This doesn't look great when you consider CEO remuneration is up on last year. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if Nxt-ID insiders are buying or selling shares.

If you want to buy a stock that is better than Nxt-ID, this freelist of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.