Does ThermoGenesis Holdings' (NASDAQ:THMO) CEO Salary Compare Well With Industry Peers?

By
Simply Wall St
Published
December 15, 2020
NasdaqCM:THMO

This article will reflect on the compensation paid to Chris Xu who has served as CEO of ThermoGenesis Holdings, Inc. (NASDAQ:THMO) since 2016. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for ThermoGenesis Holdings.

Check out our latest analysis for ThermoGenesis Holdings

How Does Total Compensation For Chris Xu Compare With Other Companies In The Industry?

At the time of writing, our data shows that ThermoGenesis Holdings, Inc. has a market capitalization of US$15m, and reported total annual CEO compensation of US$472k for the year to December 2019. We note that's a decrease of 28% compared to last year. Notably, the salary of US$472k is the entirety of the CEO compensation.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$556k. So it looks like ThermoGenesis Holdings compensates Chris Xu in line with the median for the industry.

Component20192018Proportion (2019)
Salary US$472k US$460k 100%
Other - US$193k -
Total CompensationUS$472k US$653k100%

Talking in terms of the industry, salary represented approximately 22% of total compensation out of all the companies we analyzed, while other remuneration made up 78% of the pie. On a company level, ThermoGenesis Holdings prefers to reward its CEO through a salary, opting not to pay Chris Xu through non-salary benefits. 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.

ceo-compensation
NasdaqCM:THMO CEO Compensation December 15th 2020

ThermoGenesis Holdings, Inc.'s Growth

Over the past three years, ThermoGenesis Holdings, Inc. has seen its earnings per share (EPS) grow by 38% per year. Its revenue is down 32% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 ThermoGenesis Holdings, Inc. Been A Good Investment?

Given the total shareholder loss of 92% over three years, many shareholders in ThermoGenesis Holdings, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

ThermoGenesis Holdings pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we noted earlier, ThermoGenesis Holdings pays its CEO in line with similar-sized companies belonging to the same industry. On the other hand, the company has logged negative shareholder returns over the previous three years. But on the bright side, EPS growth is positive over the same period. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 4 warning signs for ThermoGenesis Holdings (2 shouldn't be ignored!) that you should be aware of before investing here.

Switching gears from ThermoGenesis Holdings, 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. 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.
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