Key Insights

• Avalon GloboCare will host its Annual General Meeting on 12th of October
• Total pay for CEO David Jin includes US$360.0k salary
• The total compensation is similar to the average for the industry
• Over the past three years, Avalon GloboCare's EPS grew by 16% and over the past three years, the total loss to shareholders 94%

In the past three years, the share price of Avalon GloboCare Corp. (NASDAQ:ALBT) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 12th of October. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for Avalon GloboCare

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

According to our data, Avalon GloboCare Corp. has a market capitalization of US$8.2m, and paid its CEO total annual compensation worth US$360k over the year to December 2022. There was no change in the compensation compared to last year. Notably, the salary of US$360k is the entirety of the CEO compensation.

In comparison with other companies in the American Real Estate industry with market capitalizations under US$200m, the reported median total CEO compensation was US$403k. From this we gather that David Jin is paid around the median for CEOs in the industry. 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.

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 salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Avalon GloboCare Corp.'s Growth

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

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Avalon GloboCare Corp. Been A Good Investment?

With a total shareholder return of -94% over three years, Avalon GloboCare Corp. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Avalon GloboCare rewards its CEO solely through a salary, ignoring non-salary benefits completely. The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. 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. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 5 warning signs for Avalon GloboCare (of which 2 are a bit concerning!) that you should know about in order to have a holistic understanding of the 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.