Yahoo Finance Shareholders Will Probably Hold Off On Increasing Artivion, Inc.'s (NYSE:AORT) CEO Compensation For The Time Being
Key Insights
Artivion will host its Annual General Meeting on 14th of May
CEO Pat Mackin's total compensation includes salary of US$775.9k
The total compensation is similar to the average for the industry
Artivion's EPS declined by 26% over the past three years while total shareholder loss over the past three years was 19%
The underwhelming share price performance of Artivion, Inc. (NYSE:AORT) in the past three years would have disappointed many shareholders. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. Shareholders will have a chance to take their concerns to the board at the next AGM on 14th of May and vote on resolutions including executive compensation, which studies show may have an impact on company performance. Here's why we think shareholders should hold off on a raise for the CEO at the moment.
See our latest analysis for Artivion
Comparing Artivion, Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that Artivion, Inc. has a market capitalization of US$992m, and reported total annual CEO compensation of US$3.2m for the year to December 2023. We note that's a decrease of 58% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$776k.
In comparison with other companies in the American Medical Equipment industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$4.4m. So it looks like Artivion compensates Pat Mackin in line with the median for the industry. What's more, Pat Mackin holds US$16m 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$776k | US$750k | 24% |
Other | US$2.4m | US$6.8m | 76% |
Total Compensation | US$3.2m | US$7.5m | 100% |
Speaking on an industry level, nearly 25% of total compensation represents salary, while the remainder of 75% is other remuneration. Artivion is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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 Artivion, Inc.'s Growth Numbers
Over the last three years, Artivion, Inc. has shrunk its earnings per share by 26% per year. In the last year, its revenue is up 15%.
Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Artivion, Inc. Been A Good Investment?
With a three year total loss of 19% for the shareholders, Artivion, Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. Shareholders will get the chance at the upcoming AGM to question the board on key matters, such as CEO remuneration or any other issues they might have 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. We did our research and spotted 2 warning signs for Artivion that investors should look into moving forward.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.
