Yahoo Finance We Think Shareholders May Want To Consider A Review Of TOMI Environmental Solutions, Inc.'s (NASDAQ:TOMZ) CEO Compensation Package
Key Insights
TOMI Environmental Solutions to hold its Annual General Meeting on 12th of September
Salary of US$550.0k is part of CEO Halden Shane's total remuneration
Total compensation is similar to the industry average
Over the past three years, TOMI Environmental Solutions' EPS fell by 77% and over the past three years, the total loss to shareholders 77%
Shareholders will probably not be too impressed with the underwhelming results at TOMI Environmental Solutions, Inc. (NASDAQ:TOMZ) recently. At the upcoming AGM on 12th of September, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.
Check out our latest analysis for TOMI Environmental Solutions
How Does Total Compensation For Halden Shane Compare With Other Companies In The Industry?
According to our data, TOMI Environmental Solutions, Inc. has a market capitalization of US$24m, and paid its CEO total annual compensation worth US$737k over the year to December 2022. Notably, that's a decrease of 15% over the year before. Notably, the salary which is US$550.0k, represents most of the total compensation being paid.
On comparing similar-sized companies in the American Commercial Services industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$702k. So it looks like TOMI Environmental Solutions compensates Halden Shane in line with the median for the industry. Moreover, Halden Shane also holds US$3.0m worth of TOMI Environmental Solutions stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2022 | 2021 | Proportion (2022) |
Salary | US$550k | US$500k | 75% |
Other | US$187k | US$365k | 25% |
Total Compensation | US$737k | US$865k | 100% |
Talking in terms of the industry, salary represented approximately 22% of total compensation out of all the companies we analyzed, while other remuneration made up 78% of the pie. It's interesting to note that TOMI Environmental Solutions pays out a greater portion of remuneration through salary, compared to the 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.
A Look at TOMI Environmental Solutions, Inc.'s Growth Numbers
Over the last three years, TOMI Environmental Solutions, Inc. has shrunk its earnings per share by 77% per year. It achieved revenue growth of 12% over the last year.
Few shareholders would be pleased to read that EPS have declined. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 TOMI Environmental Solutions, Inc. Been A Good Investment?
Few TOMI Environmental Solutions, Inc. shareholders would feel satisfied with the return of -77% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
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 TOMI Environmental Solutions (of which 2 don't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from TOMI Environmental Solutions, 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.
