Shareholders Will Probably Hold Off On Increasing Natural Alternatives International, Inc.'s (NASDAQ:NAII) CEO Compensation For The Time Being
In This Article:
Key Insights
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Natural Alternatives International to hold its Annual General Meeting on 7th of December
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CEO Mark LeDoux's total compensation includes salary of US$493.3k
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Total compensation is 228% above industry average
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Natural Alternatives International's three-year loss to shareholders was 41% while its EPS grew by 17% over the past three years
Shareholders of Natural Alternatives International, Inc. (NASDAQ:NAII) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 7th of December could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
See our latest analysis for Natural Alternatives International
How Does Total Compensation For Mark LeDoux Compare With Other Companies In The Industry?
Our data indicates that Natural Alternatives International, Inc. has a market capitalization of US$36m, and total annual CEO compensation was reported as US$915k for the year to June 2023. That's slightly lower by 4.1% over the previous year. In particular, the salary of US$493.3k, makes up a fairly large portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the American Personal Products industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$279k. Hence, we can conclude that Mark LeDoux is remunerated higher than the industry median. Moreover, Mark LeDoux also holds US$5.6m worth of Natural Alternatives International stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2023 | 2022 | Proportion (2023) |
| Salary | US$493k | US$473k | 54% |
| Other | US$422k | US$482k | 46% |
| Total Compensation | US$915k | US$954k | 100% |
Speaking on an industry level, nearly 67% of total compensation represents salary, while the remainder of 33% is other remuneration. Natural Alternatives International pays a modest slice of remuneration through salary, as compared to the broader 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.
