Key Insights

• Surmodics will host its Annual General Meeting on 8th of February

• Salary of US$640.4k is part of CEO Gary Maharaj's total remuneration

• Total compensation is similar to the industry average

• Surmodics' three-year loss to shareholders was 28% while its EPS grew by 96% over the past three years

Shareholders of Surmodics, Inc. (NASDAQ:SRDX) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 8th of February could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Surmodics

Comparing Surmodics, Inc.'s CEO Compensation With The Industry

According to our data, Surmodics, Inc. has a market capitalization of US$462m, and paid its CEO total annual compensation worth US$3.5m over the year to September 2023. Notably, that's an increase of 14% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$640k.

On examining similar-sized companies in the American Medical Equipment industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$3.1m. So it looks like Surmodics compensates Gary Maharaj in line with the median for the industry. Moreover, Gary Maharaj also holds US$6.2m worth of Surmodics stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 27% of total compensation out of all the companies we analyzed, while other remuneration made up 73% of the pie. Surmodics pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Surmodics, Inc.'s Growth Numbers

Surmodics, Inc.'s earnings per share (EPS) grew 96% per year over the last three years. In the last year, its revenue is up 36%.