Linda Marbán became the CEO of Capricor Therapeutics, Inc. (NASDAQ:CAPR) in 2010. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Capricor Therapeutics
How Does Linda Marbán’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Capricor Therapeutics, Inc. has a market cap of US$6.0m, and reported total annual CEO compensation of US$377k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$233k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$502k.
So Linda Marbán is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance. Shareholders might be interested in this free visualization of analyst forecasts.
You can see a visual representation of the CEO compensation at Capricor Therapeutics, below.
Is Capricor Therapeutics, Inc. Growing?
Over the last three years Capricor Therapeutics, Inc. has grown its earnings per share (EPS) by an average of 53% per year (using a line of best fit). In the last year, its revenue is down 4.5%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.
Has Capricor Therapeutics, Inc. Been A Good Investment?
Given the total loss of 94% over three years, many shareholders in Capricor Therapeutics, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
Linda Marbán is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Capricor Therapeutics (free visualization of insider trades).
Important note: Capricor Therapeutics may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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