Key Insights
- USANA Health Sciences to hold its Annual General Meeting on 19th of May
- Total pay for CEO Jim Brown includes US$800.0k salary
- The total compensation is similar to the average for the industry
- USANA Health Sciences' EPS declined by 30% over the past three years while total shareholder loss over the past three years was 58%
USANA Health Sciences, Inc. (NYSE:USNA) has not performed well recently and CEO Jim Brown will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 19th of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.
Check out our latest analysis for USANA Health Sciences
How Does Total Compensation For Jim Brown Compare With Other Companies In The Industry?
At the time of writing, our data shows that USANA Health Sciences, Inc. has a market capitalization of US$549m, and reported total annual CEO compensation of US$3.4m for the year to December 2024. Notably, that's an increase of 36% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$800k.
On examining similar-sized companies in the American Personal Products industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$2.9m. This suggests that USANA Health Sciences remunerates its CEO largely in line with the industry average. Furthermore, Jim Brown directly owns US$675k worth of shares in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$800k | US$710k | 24% |
| Other | US$2.6m | US$1.8m | 76% |
| Total Compensation | US$3.4m | US$2.5m | 100% |
On an industry level, around 49% of total compensation represents salary and 51% is other remuneration. USANA Health Sciences pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at USANA Health Sciences, Inc.'s Growth Numbers
Over the last three years, USANA Health Sciences, Inc. has shrunk its earnings per share by 30% per year. In the last year, its revenue is down 2.7%.
Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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.
Has USANA Health Sciences, Inc. Been A Good Investment?
Few USANA Health Sciences, Inc. shareholders would feel satisfied with the return of -58% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for USANA Health Sciences that investors should be aware of in a dynamic business environment.
Switching gears from USANA Health Sciences, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.