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Mitch Steiner became the CEO of Veru Inc. (NASDAQ:VERU) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Mitch Steiner’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Veru Inc. has a market cap of US$136m, and is paying total annual CEO compensation of US$740k. (This number is for the twelve months until September 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$383k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$465k.
As you can see, Mitch Steiner is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Veru Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Veru has changed over time.
Is Veru Inc. Growing?
Over the last three years Veru Inc. has shrunk its earnings per share by an average of 79% per year (measured with a line of best fit). It achieved revenue growth of 83% over the last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching.
Has Veru Inc. Been A Good Investment?
I think that the total shareholder return of 72%, over three years, would leave most Veru Inc. shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
We examined the amount Veru Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. Considering this fine result for investors, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Veru.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.