Shareholders will probably not be disappointed by the robust results at Moxian, Inc. (NASDAQ:MOXC) recently and they will be keeping this in mind as they go into the AGM on 25 June 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.
Comparing Moxian, Inc.'s CEO Compensation With the industry
Our data indicates that Moxian, Inc. has a market capitalization of US$228m, and total annual CEO compensation was reported as US$120k for the year to September 2020. There was no change in the compensation compared to last year. Notably, the salary which is US$60.0k, represents most of the total compensation being paid.
On examining similar-sized companies in the industry with market capitalizations between US$100m and US$400m, we discovered that the median CEO total compensation of that group was US$232k. That is to say, Qinghu Hao is paid under the industry median. Furthermore, Qinghu Hao directly owns US$5.0m worth of shares in the company, implying that they are deeply invested in the company's success.
Speaking on an industry level, nearly 25% of total compensation represents salary, while the remainder of 75% is other remuneration. According to our research, Moxian has allocated a higher percentage of pay to salary in comparison to the wider industry.
Moxian, Inc.'s Growth
Moxian, Inc.'s earnings per share (EPS) grew 102% per year over the last three years. Its revenue is up 6.7% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Moxian, Inc. Been A Good Investment?
With a total shareholder return of 18% over three years, Moxian, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
The company's overall performance, while not bad, could be better. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for Moxian you should be aware of, and 1 of them is significant.
Important note: Moxian is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
This article by Simply Wall St is general in nature. 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.
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