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How Should Investors React To ENDRA Life Sciences' (NASDAQ:NDRA) CEO Pay?

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NASDAQ:NDRA) since 2015, and this article will examine the executive’s compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.” data-reactid=”28″>Francois Michelon has been the CEO of ENDRA Life Sciences Inc. (NASDAQ:NDRA) since 2015, and this article will examine the executive’s compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for ENDRA Life Sciences ” data-reactid=”29″> See our latest analysis for ENDRA Life Sciences

How Does Total Compensation For Francois Michelon Compare With Other Companies In The Industry?

At the time of writing, our data shows that ENDRA Life Sciences Inc. has a market capitalization of US$15m, and reported total annual CEO compensation of US$979k for the year to December 2019. Notably, that’s an increase of 35% over the year before. While this analysis focuses on total compensation, it’s worth acknowledging that the salary portion is lower, valued at US$353k.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$582k. Hence, we can conclude that Francois Michelon is remunerated higher than the industry median. Moreover, Francois Michelon also holds US$59k worth of ENDRA Life Sciences stock directly under their own name.

Component 2019 2018 Proportion (2019)
Salary US$353k US$340k 36%
Other US$626k US$385k 64%
Total Compensation US$979k US$725k 100%

On an industry level, around 20% of total compensation represents salary and 80% is other remuneration. ENDRA Life Sciences is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation

ENDRA Life Sciences Inc.’s Growth

ENDRA Life Sciences Inc.’s earnings per share (EPS) grew 11% per year over the last three years. In the last year, the company lost virtually all of its revenue.

this free visualization of analyst forecasts.” data-reactid=”54″>Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 ENDRA Life Sciences Inc. Been A Good Investment?

Given the total shareholder loss of 74% over three years, many shareholders in ENDRA Life Sciences 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…

As we noted earlier, ENDRA Life Sciences pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, the EPS growth is certainly impressive, but it’s disappointing to see negative shareholder returns over the same period. Although we’d stop short of calling it inappropriate, we think Francois is earning a very handsome sum.

6 warning signs for ENDRA Life Sciences (of which 3 can’t be ignored!) that you should know about in order to have a holistic understanding of the stock.” data-reactid=”59″>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 6 warning signs for ENDRA Life Sciences (of which 3 can’t be ignored!) that you should know about in order to have a holistic understanding of the stock.

list of high return, low debt companies is a great place to look.” data-reactid=”60″>Switching gears from ENDRA Life Sciences, 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.

Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”65″>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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected].

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