Trxade Group, Inc.’s (NASDAQ:MEDS) CEO Compensation Is Looking A Bit Stretched At The Moment

CEO Suren Ajjarapu has done a decent job of delivering relatively good performance at Trxade Group, Inc. (NASDAQ:MEDS) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 27 May 2021. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Trxade Group

How Does Total Compensation For Suren Ajjarapu Compare With Other Companies In The Industry?

According to our data, Trxade Group, Inc. has a market capitalization of US$28m, and paid its CEO total annual compensation worth US$667k over the year to December 2020. That’s a notable decrease of 11% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$286k.

In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$175k. Hence, we can conclude that Suren Ajjarapu is remunerated higher than the industry median. Moreover, Suren Ajjarapu also holds US$7.7m worth of Trxade Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 24% of total compensation represents salary and 76% is other remuneration. It’s interesting to note that Trxade Group 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 Trxade Group, Inc.’s Growth Numbers

Over the last three years, Trxade Group, Inc. has shrunk its earnings per share by 135% per year. In the last year, its revenue is up 121%.

Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching. Historical performance can sometimes be a good indicator on what’s coming up next but if you want to peer into the company’s future you might be interested in this free visualization of analyst forecasts.

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Has Trxade Group, Inc. Been A Good Investment?

Trxade Group, Inc. has generated a total shareholder return of 13% over three years, so most shareholders would be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary…

Although the company has performed relatively well, we still think there are some areas that could be improved. We still think that some shareholders will be hesitant of increasing CEO pay until EPS growth improves, since they are already paid higher than the industry.

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. That’s why we did some digging and identified 4 warning signs for Trxade Group that you should be aware of before investing.

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.

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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