Key Insights

• Varex Imaging to hold its Annual General Meeting on 12th of February
• Total pay for CEO Sunny Sanyal includes US$815.8k salary
• Total compensation is 68% above industry average
• Over the past three years, Varex Imaging's EPS fell by 97% and over the past three years, the total loss to shareholders 25%

The results at Varex Imaging Corporation (NASDAQ:VREX) have been quite disappointing recently and CEO Sunny Sanyal bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 12th of February. 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.

How Does Total Compensation For Sunny Sanyal Compare With Other Companies In The Industry?

Our data indicates that Varex Imaging Corporation has a market capitalization of US$584m, and total annual CEO compensation was reported as US$4.6m for the year to October 2025. This means that the compensation hasn't changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$816k.

For comparison, other companies in the American Medical Equipment industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$2.8m. Hence, we can conclude that Sunny Sanyal is remunerated higher than the industry median. What's more, Sunny Sanyal holds US$3.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 29% of total compensation represents salary and 71% is other remuneration. It's interesting to note that Varex Imaging allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Varex Imaging Corporation's Growth Numbers

Over the last three years, Varex Imaging Corporation has shrunk its earnings per share by 97% per year. It achieved revenue growth of 4.1% over the last year.

The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Varex Imaging Corporation Been A Good Investment?

With a three year total loss of 25% for the shareholders, Varex Imaging Corporation would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

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, the board will get the chance to explain the steps it plans to take to improve business performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well.

Switching gears from Varex Imaging, 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.

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.