Shareholders May Be More Conservative With Northern Technologies International Corporation's (NASDAQ:NTIC) CEO Compensation For Now

Shareholders May Be More Conservative With Northern Technologies International Corporation's (NASDAQ:NTIC) CEO Compensation For Now

Key Insights

  • Northern Technologies International's Annual General Meeting to take place on 19th of January

  • Salary of US$493.7k is part of CEO G. Lynch's total remuneration

  • The overall pay is 100% above the industry average

  • Over the past three years, Northern Technologies International's EPS grew by 7.4% and over the past three years, the total shareholder return was 0.03%

CEO G. Lynch has done a decent job of delivering relatively good performance at Northern Technologies International Corporation (NASDAQ:NTIC) recently. As shareholders go into the upcoming AGM on 19th of January, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Northern Technologies International

How Does Total Compensation For G. Lynch Compare With Other Companies In The Industry?

At the time of writing, our data shows that Northern Technologies International Corporation has a market capitalization of US$116m, and reported total annual CEO compensation of US$889k for the year to August 2023. This means that the compensation hasn't changed much from last year. In particular, the salary of US$493.7k, makes up a fairly large portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the American Chemicals industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$444k. This suggests that G. Lynch is paid more than the median for the industry. Moreover, G. Lynch also holds US$1.3m worth of Northern Technologies International stock directly under their own name.

Component

2023

2022

Proportion (2023)

Salary

US$494k

US$470k

56%

Other

US$395k

US$420k

44%

Total Compensation

US$889k

US$890k

100%

On an industry level, around 19% of total compensation represents salary and 81% is other remuneration. Northern Technologies International pays out 56% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

ceo-compensation
NasdaqGM:NTIC CEO Compensation January 13th 2024

A Look at Northern Technologies International Corporation's Growth Numbers

Northern Technologies International Corporation's earnings per share (EPS) grew 7.4% per year over the last three years. Its revenue is up 5.6% over the last year.

We're not particularly impressed by the revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. 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.