In 2008 Jill Milne was appointed CEO of Catabasis Pharmaceuticals, Inc. (NASDAQ:CATB). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Jill Milne’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Catabasis Pharmaceuticals, Inc. has a market cap of US$111m, and is paying total annual CEO compensation of US$633k. (This figure is for the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$462k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$423k.
As you can see, Jill Milne is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Catabasis Pharmaceuticals, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Catabasis Pharmaceuticals has changed from year to year.
Is Catabasis Pharmaceuticals, Inc. Growing?
Over the last three years Catabasis Pharmaceuticals, Inc. has grown its earnings per share (EPS) by an average of 54% per year (using a line of best fit). Revenue was pretty flat on last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has Catabasis Pharmaceuticals, Inc. Been A Good Investment?
With a three year total loss of 81%, Catabasis Pharmaceuticals, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We compared the total CEO remuneration paid by Catabasis Pharmaceuticals, Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Shareholders may want to check for free if Catabasis Pharmaceuticals insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.