The impressive results at ChromaDex Corporation (NASDAQ:CDXC) recently will be great news for shareholders. At the upcoming AGM on 17 June 2021, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

View our latest analysis for ChromaDex

How Does Total Compensation For Rob Fried Compare With Other Companies In The Industry?

Our data indicates that ChromaDex Corporation has a market capitalization of US$682m, and total annual CEO compensation was reported as US$1.1m for the year to December 2020. Notably, that's a decrease of 34% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$519k.

For comparison, other companies in the same industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$2.1m. Accordingly, ChromaDex pays its CEO under the industry median. Moreover, Rob Fried also holds US$15m worth of ChromaDex stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 14% of total compensation represents salary, while the remainder of 86% is other remuneration. ChromaDex pays out 46% of remuneration in the form of a salary, significantly higher than the industry average. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ChromaDex Corporation's Growth

ChromaDex Corporation has seen its earnings per share (EPS) increase by 16% a year over the past three years. Its revenue is up 18% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has ChromaDex Corporation Been A Good Investment?

Most shareholders would probably be pleased with ChromaDex Corporation for providing a total return of 170% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for ChromaDex that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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. 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.

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