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The underwhelming share price performance of BIO-key International, Inc. (NASDAQ:BKYI) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 18 June 2021. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. 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 BIO-key International
Comparing BIO-key International, Inc.'s CEO Compensation With the industry
According to our data, BIO-key International, Inc. has a market capitalization of US$32m, and paid its CEO total annual compensation worth US$349k over the year to December 2020. That's a notable increase of 12% on last year. We note that the salary portion, which stands at US$275.0k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$450k. This suggests that BIO-key International remunerates its CEO largely in line with the industry average. What's more, Mike DePasquale holds US$93k worth of shares in the company in their own name.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$275k | US$275k | 79% |
| Other | US$74k | US$36k | 21% |
| Total Compensation | US$349k | US$311k | 100% |
On an industry level, roughly 11% of total compensation represents salary and 89% is other remuneration. According to our research, BIO-key International has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at BIO-key International, Inc.'s Growth Numbers
BIO-key International, Inc. has seen its earnings per share (EPS) increase by 12% a year over the past three years. It achieved revenue growth of 88% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.