Shareholders Will Likely Find Wearable Devices Ltd.'s (NASDAQ:WLDS) CEO Compensation Acceptable

Key Insights

• Wearable Devices will host its Annual General Meeting on 24th of October
• CEO Asher Dahan's total compensation includes salary of US$205.4k
• The total compensation is 59% less than the average for the industry
• Wearable Devices' EPS grew by 26% over the past three years while total shareholder loss over the past three years was 96%

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Performance at Wearable Devices Ltd. (NASDAQ:WLDS) has been rather uninspiring recently and shareholders may be wondering how CEO Asher Dahan plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 24th of October. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We think CEO compensation looks appropriate given the data we have put together.

See our latest analysis for Wearable Devices

Comparing Wearable Devices Ltd.'s CEO Compensation With The Industry

According to our data, Wearable Devices Ltd. has a market capitalization of US$18m, and paid its CEO total annual compensation worth US$267k over the year to December 2024. That's a notable decrease of 8.7% on last year. In particular, the salary of US$205.4k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the American Tech industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$646k. In other words, Wearable Devices pays its CEO lower than the industry median. What's more, Asher Dahan holds US$57k worth of shares in the company in their own name.

Talking in terms of the industry, salary represented approximately 12% of total compensation out of all the companies we analyzed, while other remuneration made up 88% of the pie. According to our research, Wearable Devices has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Wearable Devices Ltd.'s Growth Numbers

Over the past three years, Wearable Devices Ltd. has seen its earnings per share (EPS) grow by 26% per year. In the last year, its revenue is down 9.1%.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 Wearable Devices Ltd. Been A Good Investment?

With a total shareholder return of -96% over three years, Wearable Devices Ltd. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss is certainly disheartening. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. A key question may be why the fundamentals have not yet been reflected into the share price. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 5 warning signs for Wearable Devices (of which 4 are a bit concerning!) that you should know about in order to have a holistic understanding of the stock.

Important note: Wearable Devices 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.