Shareholders May Be A Bit More Conservative With Avalon GloboCare Corp.'s (NASDAQ:ALBT) CEO Compensation For Now

Shareholders May Be A Bit More Conservative With Avalon GloboCare Corp.'s (NASDAQ:ALBT) CEO Compensation For Now

Key Insights

  • Avalon GloboCare will host its Annual General Meeting on 12th of October

  • CEO David Jin's total compensation includes salary of US$360.0k

  • The overall pay is comparable to the industry average

  • Avalon GloboCare's EPS grew by 16% over the past three years while total shareholder loss over the past three years was 94%

Shareholders of Avalon GloboCare Corp. (NASDAQ:ALBT) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 12th of October. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Avalon GloboCare

Comparing Avalon GloboCare Corp.'s CEO Compensation With The Industry

At the time of writing, our data shows that Avalon GloboCare Corp. has a market capitalization of US$8.2m, and reported total annual CEO compensation of US$360k for the year to December 2022. This was the same amount the CEO received in the prior year. Notably, the salary of US$360k is the entirety of the CEO compensation.

For comparison, other companies in the American Real Estate industry with market capitalizations below US$200m, reported a median total CEO compensation of US$403k. This suggests that Avalon GloboCare remunerates its CEO largely in line with the industry average. Moreover, David Jin also holds US$1.2m worth of Avalon GloboCare stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2022

2021

Proportion (2022)

Salary

US$360k

US$360k

100%

Other

-

-

-

Total Compensation

US$360k

US$360k

100%

Speaking on an industry level, nearly 29% of total compensation represents salary, while the remainder of 71% is other remuneration. At the company level, Avalon GloboCare pays David Jin solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
NasdaqCM:ALBT CEO Compensation October 6th 2023

A Look at Avalon GloboCare Corp.'s Growth Numbers

Over the past three years, Avalon GloboCare Corp. has seen its earnings per share (EPS) grow by 16% per year. It saw its revenue drop 21% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.