Yahoo Finance Here's Why We Think ChromaDex Corporation's (NASDAQ:CDXC) CEO Compensation Looks Fair
Key Insights
ChromaDex to hold its Annual General Meeting on 20th of June
Total pay for CEO Rob Fried includes US$500.0k salary
The overall pay is 52% below the industry average
ChromaDex's three-year loss to shareholders was 67% while its EPS grew by 54% over the past three years
The performance at ChromaDex Corporation (NASDAQ:CDXC) has been rather lacklustre of late and shareholders may be wondering what CEO Rob Fried 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 20th of June. 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. In our opinion, CEO compensation does not look excessive and we discuss why.
See our latest analysis for ChromaDex
How Does Total Compensation For Rob Fried Compare With Other Companies In The Industry?
At the time of writing, our data shows that ChromaDex Corporation has a market capitalization of US$242m, and reported total annual CEO compensation of US$1.2m for the year to December 2023. This means that the compensation hasn't changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$500k.
On comparing similar companies from the American Life Sciences industry with market caps ranging from US$100m to US$400m, we found that the median CEO total compensation was US$2.4m. Accordingly, ChromaDex pays its CEO under the industry median. What's more, Rob Fried holds US$4.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$500k | US$500k | 43% |
Other | US$660k | US$659k | 57% |
Total Compensation | US$1.2m | US$1.2m | 100% |
On an industry level, around 19% of total compensation represents salary and 81% is other remuneration. ChromaDex pays out 43% of remuneration in the form of a salary, significantly higher than the industry average. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at ChromaDex Corporation's Growth Numbers
ChromaDex Corporation's earnings per share (EPS) grew 54% per year over the last three years. In the last year, its revenue is up 7.5%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has ChromaDex Corporation Been A Good Investment?
The return of -67% over three years would not have pleased ChromaDex Corporation shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
The fact that shareholders are sitting on a loss is certainly disheartening. The share price trend has diverged with the robust growth in EPS however, suggesting there may be other factors that could be driving the price performance. A key focus for the board and management will be how to align the share price with fundamentals. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for ChromaDex that investors should think about before committing capital to this stock.
Switching gears from ChromaDex, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.
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