Shareholders will benefit from the robust results Aspira Women’s Health Inc. (NASDAQ: AWH) recently and they will keep that in mind at the Annual General Meeting on June 22, 2021. This would also be an opportunity for them to hear the board review the financial results and future corporate strategy to further improve the company and vote on decisions such as executive compensation. Here’s our take on why we think CEO compensation is fair, and possibly even warrant a raise.
Check out our latest analysis for Aspira Women’s Health
How does Valerie Palmieri’s total compensation compare to other companies in the sector?
At time of publication, our data shows Aspira Women’s Health Inc. has a market cap of $ 664 million and total CEO compensation of $ 952,000 for the year ended December 2020 totaling $ 952,000. Compared to the previous year, this is largely unchanged from the remuneration. While this analysis focuses on total compensation, it should be recognized that the salary component is lower and is estimated at $ 400,000.
When comparing similar companies in the same industry with market capitalizations of $ 400 billion to $ 1.6 billion, we found that the average total CEO compensation was $ 3.0 million. This suggests that Valerie Palmieri is paid below the industry average. Additionally, Valerie Palmieri directly owns $ 1.3 million worth of shares in the company, meaning they are heavily invested in the company’s success.
| component | 2020 | 2019 | Share (2020) |
| salary | $ 400,000 | 394 thousand US dollars | 42% |
| Other | 552 thousand US dollars | 548 thousand US dollars | 58% |
| Total compensation | 952 thousand US dollars | 942 thousand US dollars | 100% |
At the industry level, nearly 22% of total compensation is salary, while the remainder of 78% is other compensation. It is interesting to note that Aspira Women’s Health pays a larger proportion of the compensation through salary compared to the industry. If non-salary remuneration dominates total salary, it is an indicator that the executive’s salary is tied to company performance.
NasdaqCM: AWH CEO Compensation June 15, 2021
The growth of Aspira Women’s Health Inc.
Aspira Women’s Health Inc. earnings per share (EPS) rose 3.2% annually over the past three years. Last year sales only changed by 0.6%.
We’d prefer if there was sales growth, but it’s good to see at least modest EPS growth. These two metrics are moving in different directions. While it’s difficult to gauge performance, we think the stock is worth watching. If you are looking ahead, you might want to have this free visual report on top Analyst Forecasts for the future profit of the company ..
Was Aspira Women’s Health Inc. a Good Investment?
Most shareholders would likely look forward to a total return of 499% over three years from Aspira Women’s Health Inc. So you couldn’t worry if the CEO got paid more than is common for companies of about the same size.
Conclude…
While the company seems on the right track in terms of performance, there is always room for improvement. If things continue down the same path, shareholders could have even more confidence in their investment and have little to no objection to CEO salaries. Rather, investors would be more likely to participate in discussions about key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
It is always advisable to analyze CEO salaries and do a thorough analysis of key performance areas of the company. We have identified 5 warning signs for Aspira Women’s Health (1 doesn’t go that well with us!) That you should know before investing here.
Important NOTE: Aspira Women’s Health is an exciting stock, but we understand investors are looking for an unencumbered balance sheet and blockbuster returns. Maybe you will find something better on this list of interesting companies with high ROE and low debt.
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This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. Our goal is to provide you with long-term, focused analysis based on fundamentals. Note that our analysis may not take into account the latest company announcements or quality material, which may be sensitive to the price. Simply Wall St has no position in the stocks mentioned.
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source https://dailyhealthynews.ca/this-is-why-aspira-womens-health-inc-s-nasdaqawh-ceo-can-expect-a-bump-up-in-their-pay-packet/
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