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Is NeuroMetrix, Inc.'s (NASDAQ:NURO) CEO Pay Fair?

Shai Gozani has been the CEO of NeuroMetrix, Inc. (NASDAQ:NURO) since 1997. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for NeuroMetrix

How Does Shai Gozani's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that NeuroMetrix, Inc. has a market cap of US$4.3m, and reported total annual CEO compensation of US$478k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$415k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$522k.

That means Shai Gozani receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at NeuroMetrix, below.

NasdaqCM:NURO CEO Compensation, February 20th 2020
NasdaqCM:NURO CEO Compensation, February 20th 2020

Is NeuroMetrix, Inc. Growing?

Over the last three years NeuroMetrix, Inc. has grown its earnings per share (EPS) by an average of 132% per year (using a line of best fit). In the last year, its revenue is down 42%.

This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. It could be important to check this free visual depiction of what analysts expect for the future.

Has NeuroMetrix, Inc. Been A Good Investment?

Since shareholders would have lost about 94% over three years, some NeuroMetrix, Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Shai Gozani is paid around what is normal the leaders of comparable size companies.

We like that the company is growing EPS, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling NeuroMetrix (free visualization of insider trades).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.