Key Insights

• Nano-X Imaging will host its Annual General Meeting on 3rd of December
• CEO Erez Meltzer's total compensation includes salary of US$904.0k
• The total compensation is 38% less than the average for the industry
• Nano-X Imaging's three-year loss to shareholders was 71% while its EPS grew by 9.4% over the past three years

Performance at Nano-X Imaging Ltd. (NASDAQ:NNOX) has been rather uninspiring recently and shareholders may be wondering how CEO Erez Meltzer plans to fix this. At the next AGM coming up on 3rd of December, they can influence managerial decision making through voting on resolutions, including executive remuneration. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

How Does Total Compensation For Erez Meltzer Compare With Other Companies In The Industry?

At the time of writing, our data shows that Nano-X Imaging Ltd. has a market capitalization of US$379m, and reported total annual CEO compensation of US$1.5m for the year to December 2023. That's a notable decrease of 50% on last year. We note that the salary of US$904.0k makes up a sizeable portion of the total compensation received by the CEO.

On comparing similar companies from the American Healthcare industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$2.5m. In other words, Nano-X Imaging pays its CEO lower than the industry median.

On an industry level, roughly 21% of total compensation represents salary and 79% is other remuneration. It's interesting to note that Nano-X Imaging pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Nano-X Imaging Ltd.'s Growth Numbers

Nano-X Imaging Ltd. has seen its earnings per share (EPS) increase by 9.4% a year over the past three years. Its revenue is up 11% over the last year.

We think the revenue growth is good. And the improvement in EPSis modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Nano-X Imaging Ltd. Been A Good Investment?

The return of -71% over three years would not have pleased Nano-X Imaging Ltd. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The fact that shareholders have earned a negative share price return is certainly disconcerting. Perhaps the poor price performance may have something to do with the the fact that earnings per share growth has not been performing as strongly either. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

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 Nano-X Imaging that investors should be aware of in a dynamic business environment.

Important note: Nano-X Imaging 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.

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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.