Shareholders Will Probably Hold Off On Increasing ThermoGenesis Holdings, Inc.'s (NASDAQ:THMO) CEO Compensation For The Time Being
Key Insights
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ThermoGenesis Holdings will host its Annual General Meeting on 14th of December
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Salary of US$519.0k is part of CEO Chris Xu's total remuneration
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Total compensation is similar to the industry average
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ThermoGenesis Holdings' EPS grew by 79% over the past three years while total shareholder loss over the past three years was 99%
In the past three years, the share price of ThermoGenesis Holdings, Inc. (NASDAQ:THMO) has struggled to grow and now shareholders are sitting on a loss. 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 14th of December 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.
Check out our latest analysis for ThermoGenesis Holdings
How Does Total Compensation For Chris Xu Compare With Other Companies In The Industry?
At the time of writing, our data shows that ThermoGenesis Holdings, Inc. has a market capitalization of US$2.9m, and reported total annual CEO compensation of US$699k for the year to December 2022. We note that's a small decrease of 6.6% on last year. In particular, the salary of US$519.0k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the American Medical Equipment industry with market capitalizations below US$200m, reported a median total CEO compensation of US$715k. So it looks like ThermoGenesis Holdings compensates Chris Xu in line with the median for the industry.
| Component | 2022 | 2021 | Proportion (2022) |
| Salary | US$519k | US$500k | 74% |
| Other | US$180k | US$248k | 26% |
| Total Compensation | US$699k | US$748k | 100% |
Speaking on an industry level, nearly 27% of total compensation represents salary, while the remainder of 73% is other remuneration. ThermoGenesis Holdings is paying a higher share of its remuneration through a salary in comparison to the overall industry. 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.
ThermoGenesis Holdings, Inc.'s Growth
Over the past three years, ThermoGenesis Holdings, Inc. has seen its earnings per share (EPS) grow by 79% per year. In the last year, its revenue is down 5.0%.