Yahoo Finance Here's Why It's Unlikely That Nu Skin Enterprises, Inc.'s (NYSE:NUS) CEO Will See A Pay Rise This Year
Key Insights
Nu Skin Enterprises' Annual General Meeting to take place on 5th of June
Salary of US$991.9k is part of CEO Ryan Napierski's total remuneration
Total compensation is 136% above industry average
Nu Skin Enterprises' three-year loss to shareholders was 76% while its EPS was down 69% over the past three years
Nu Skin Enterprises, Inc. (NYSE:NUS) has not performed well recently and CEO Ryan Napierski will probably need to up their game. At the upcoming AGM on 5th of June, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.
Check out our latest analysis for Nu Skin Enterprises
Comparing Nu Skin Enterprises, Inc.'s CEO Compensation With The Industry
According to our data, Nu Skin Enterprises, Inc. has a market capitalization of US$663m, and paid its CEO total annual compensation worth US$5.8m over the year to December 2023. We note that's an increase of 23% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$992k.
For comparison, other companies in the American Personal Products industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$2.5m. This suggests that Ryan Napierski is paid more than the median for the industry. Moreover, Ryan Napierski also holds US$1.4m worth of Nu Skin Enterprises stock directly under their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$992k | US$942k | 17% |
Other | US$4.8m | US$3.8m | 83% |
Total Compensation | US$5.8m | US$4.8m | 100% |
On an industry level, around 54% of total compensation represents salary and 46% is other remuneration. It's interesting to note that Nu Skin Enterprises allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Nu Skin Enterprises, Inc.'s Growth Numbers
Over the last three years, Nu Skin Enterprises, Inc. has shrunk its earnings per share by 69% per year. It saw its revenue drop 9.4% over the last year.
Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Nu Skin Enterprises, Inc. Been A Good Investment?
With a total shareholder return of -76% over three years, Nu Skin Enterprises, Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Nu Skin Enterprises that investors should look into moving forward.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.
