Key Insights

• VirnetX Holding's Annual General Meeting to take place on 13th of June

• CEO Kendall Larsen's total compensation includes salary of US$789.9k

• The overall pay is 253% above the industry average

• Over the past three years, VirnetX Holding's EPS grew by 8.7% and over the past three years, the total loss to shareholders 88%

The underwhelming share price performance of VirnetX Holding Corporation (NYSE:VHC) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 13th of June. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for VirnetX Holding

Comparing VirnetX Holding Corporation's CEO Compensation With The Industry

Our data indicates that VirnetX Holding Corporation has a market capitalization of US$14m, and total annual CEO compensation was reported as US$2.1m for the year to December 2023. That's a notable increase of 38% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$790k.

In comparison with other companies in the American Software industry with market capitalizations under US$200m, the reported median total CEO compensation was US$594k. Hence, we can conclude that Kendall Larsen is remunerated higher than the industry median. What's more, Kendall Larsen holds US$1.6m worth of shares in the company in their own name.

Speaking on an industry level, nearly 17% of total compensation represents salary, while the remainder of 83% is other remuneration. It's interesting to note that VirnetX Holding pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at VirnetX Holding Corporation's Growth Numbers

Over the past three years, VirnetX Holding Corporation has seen its earnings per share (EPS) grow by 8.7% per year. In the last year, its revenue is down 84%.

We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.