Key Insights

• SmartRent to hold its Annual General Meeting on 14th of May
• Total pay for CEO Lucas Haldeman includes US$750.0k salary
• The overall pay is 35% above the industry average
• SmartRent's EPS grew by 96% over the past three years while total shareholder loss over the past three years was 78%

The underwhelming share price performance of SmartRent, Inc. (NYSE:SMRT) in the past three years would have disappointed many shareholders. 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 14th of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Comparing SmartRent, Inc.'s CEO Compensation With The Industry

Our data indicates that SmartRent, Inc. has a market capitalization of US$471m, and total annual CEO compensation was reported as US$4.2m for the year to December 2023. We note that's an increase of 80% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$750k.

On examining similar-sized companies in the American Electronic industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$3.1m. Accordingly, our analysis reveals that SmartRent, Inc. pays Lucas Haldeman north of the industry median. What's more, Lucas Haldeman holds US$26m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 31% of total compensation represents salary, while the remainder of 69% is other remuneration. SmartRent pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at SmartRent, Inc.'s Growth Numbers

SmartRent, Inc. has seen its earnings per share (EPS) increase by 96% a year over the past three years. Its revenue is up 14% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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.

Has SmartRent, Inc. Been A Good Investment?

The return of -78% over three years would not have pleased SmartRent, Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for SmartRent that investors should look into moving forward.

Important note: SmartRent is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.