Key Insights

• SuRo Capital to hold its Annual General Meeting on 5th of June
• Total pay for CEO Mark Klein includes US$850.0k salary
• The overall pay is 386% above the industry average
• Over the past three years, SuRo Capital's EPS fell by 99% and over the past three years, the total loss to shareholders 57%

Shareholders of SuRo Capital Corp. (NASDAQ:SSSS) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also lacking, despite revenue growth. The AGM coming up on 5th of June will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

How Does Total Compensation For Mark Klein Compare With Other Companies In The Industry?

At the time of writing, our data shows that SuRo Capital Corp. has a market capitalization of US$97m, and reported total annual CEO compensation of US$3.0m for the year to December 2023. We note that's a decrease of 32% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$850k.

For comparison, other companies in the American Capital Markets industry with market capitalizations below US$200m, reported a median total CEO compensation of US$612k. Accordingly, our analysis reveals that SuRo Capital Corp. pays Mark Klein north of the industry median. Furthermore, Mark Klein directly owns US$4.4m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 10% of total compensation represents salary and 90% is other remuneration. According to our research, SuRo Capital has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

SuRo Capital Corp.'s Growth

SuRo Capital Corp. has reduced its earnings per share by 99% a year over the last three years. Its revenue is up 64% over the last year.

Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 SuRo Capital Corp. Been A Good Investment?

Few SuRo Capital Corp. shareholders would feel satisfied with the return of -57% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for SuRo Capital that investors should be aware of in a dynamic business environment.

Switching gears from SuRo Capital, 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.