Key Insights

• Nu Skin Enterprises' Annual General Meeting to take place on 5th of June
• Total pay for CEO Ryan Napierski includes US$991.9k salary
• The total compensation is 136% higher than the average for the industry
• Nu Skin Enterprises' three-year loss to shareholders was 76% while its EPS was down 69% over the past three years

The results at Nu Skin Enterprises, Inc. (NYSE:NUS) have been quite disappointing recently and CEO Ryan Napierski bears some responsibility for this. At the upcoming AGM on 5th of June, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

How Does Total Compensation For Ryan Napierski Compare With Other Companies In The Industry?

At the time of writing, our data shows that Nu Skin Enterprises, Inc. has a market capitalization of US$663m, and reported total annual CEO compensation of US$5.8m for the year to December 2023. That's a notable increase of 23% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$992k.

On examining similar-sized companies in the American Personal Products industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$2.5m. Accordingly, our analysis reveals that Nu Skin Enterprises, Inc. pays Ryan Napierski north of the industry median. Moreover, Ryan Napierski also holds US$1.4m worth of Nu Skin Enterprises stock directly under their own name.

Talking in terms of the industry, salary represented approximately 54% of total compensation out of all the companies we analyzed, while other remuneration made up 46% of the pie. Nu Skin Enterprises pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Nu Skin Enterprises, Inc.'s Growth Numbers

Over the last three years, Nu Skin Enterprises, Inc. has shrunk its earnings per share by 69% per year. Its revenue is down 9.4% over the previous year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Nu Skin Enterprises, Inc. Been A Good Investment?

The return of -76% over three years would not have pleased Nu Skin Enterprises, Inc. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Nu Skin Enterprises that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.