Yahoo Finance Here's Why Shareholders May Want To Be Cautious With Increasing Evolv Technologies Holdings, Inc.'s (NASDAQ:EVLV) CEO Pay Packet
Key Insights
Evolv Technologies Holdings' Annual General Meeting to take place on 31st of May
Total pay for CEO Peter George includes US$513.9k salary
The total compensation is 58% higher than the average for the industry
Evolv Technologies Holdings' EPS grew by 111% over the past three years while total shareholder loss over the past three years was 72%
Shareholders of Evolv Technologies Holdings, Inc. (NASDAQ:EVLV) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 31st of May 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. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
See our latest analysis for Evolv Technologies Holdings
Comparing Evolv Technologies Holdings, Inc.'s CEO Compensation With The Industry
According to our data, Evolv Technologies Holdings, Inc. has a market capitalization of US$418m, and paid its CEO total annual compensation worth US$4.8m over the year to December 2023. That's a notable increase of 26% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$514k.
On comparing similar companies from the American Electronic industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$3.0m. Hence, we can conclude that Peter George is remunerated higher than the industry median. Moreover, Peter George also holds US$2.7m worth of Evolv Technologies Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$514k | US$474k | 11% |
Other | US$4.3m | US$3.4m | 89% |
Total Compensation | US$4.8m | US$3.8m | 100% |
On an industry level, around 31% of total compensation represents salary and 69% is other remuneration. It's interesting to note that Evolv Technologies Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Evolv Technologies Holdings, Inc.'s Growth
Over the past three years, Evolv Technologies Holdings, Inc. has seen its earnings per share (EPS) grow by 111% per year. It achieved revenue growth of 28% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Evolv Technologies Holdings, Inc. Been A Good Investment?
The return of -72% over three years would not have pleased Evolv Technologies Holdings, Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 4 warning signs for Evolv Technologies Holdings (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from Evolv Technologies Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.
