Key Insights

• Tilray Brands will host its Annual General Meeting on 19th of December
• Total pay for CEO Irwin Simon includes US$1.89m salary
• The total compensation is 135% higher than the average for the industry
• Tilray Brands' three-year loss to shareholders was 85% while its EPS was down 4.4% over the past three years

In the past three years, the share price of Tilray Brands, Inc. (NASDAQ:TLRY) has struggled to grow and now shareholders are sitting on a loss. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. Shareholders will have a chance to take their concerns to the board at the next AGM on 19th of December and vote on resolutions including executive compensation, which studies show may have an impact on company performance. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

How Does Total Compensation For Irwin Simon Compare With Other Companies In The Industry?

At the time of writing, our data shows that Tilray Brands, Inc. has a market capitalization of US$1.2b, and reported total annual CEO compensation of US$10m for the year to May 2024. We note that's a decrease of 35% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.9m.

On examining similar-sized companies in the American Pharmaceuticals industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$4.3m. This suggests that Irwin Simon is paid more than the median for the industry. Furthermore, Irwin Simon directly owns US$4.1m worth of shares in the company.

Talking in terms of the industry, salary represented approximately 28% of total compensation out of all the companies we analyzed, while other remuneration made up 72% of the pie. It's interesting to note that Tilray Brands allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Tilray Brands, Inc.'s Growth

Over the last three years, Tilray Brands, Inc. has shrunk its earnings per share by 4.4% per year. It achieved revenue growth of 25% over the last year.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Tilray Brands, Inc. Been A Good Investment?

Few Tilray Brands, Inc. shareholders would feel satisfied with the return of -85% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

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. The upcoming AGM will provide shareholders the opportunity to revisit the company's remuneration policies and evaluate if the board's judgement and decision-making is aligned with that of the company's shareholders.

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 Tilray Brands that investors should think about before committing capital to this stock.

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.

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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.