Key Insights

• ClearPoint Neuro to hold its Annual General Meeting on 15th of May
• Total pay for CEO Joe Burnett includes US$517.7k salary
• The overall pay is comparable to the industry average
• Over the past three years, ClearPoint Neuro's EPS fell by 18% and over the past three years, the total loss to shareholders 66%

In the past three years, the share price of ClearPoint Neuro, Inc. (NASDAQ:CLPT) has struggled to grow and now shareholders are sitting on a loss. Per share earnings growth is also lacking, despite revenue growth. The AGM coming up on 15th of May will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

Comparing ClearPoint Neuro, Inc.'s CEO Compensation With The Industry

According to our data, ClearPoint Neuro, Inc. has a market capitalization of US$164m, and paid its CEO total annual compensation worth US$2.0m over the year to December 2023. We note that's a small decrease of 6.3% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$518k.

On comparing similar companies from the American Medical Equipment industry with market caps ranging from US$100m to US$400m, we found that the median CEO total compensation was US$1.8m. So it looks like ClearPoint Neuro compensates Joe Burnett in line with the median for the industry. Furthermore, Joe Burnett directly owns US$1.6m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 25% of total compensation represents salary and 75% is other remuneration. Although there is a difference in how total compensation is set, ClearPoint Neuro more or less reflects the market in terms of setting the salary. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ClearPoint Neuro, Inc.'s Growth

Over the last three years, ClearPoint Neuro, Inc. has shrunk its earnings per share by 18% per year. It achieved revenue growth of 25% over the last year.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has ClearPoint Neuro, Inc. Been A Good Investment?

The return of -66% over three years would not have pleased ClearPoint Neuro, Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for ClearPoint Neuro that investors should think about before committing capital to this stock.

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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.