What We Learned About Catalyst Biosciences' (NASDAQ:CBIO) CEO Pay

Nassim Usman became the CEO of Catalyst Biosciences, Inc. (NASDAQ:CBIO) in 2015, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Catalyst Biosciences pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Catalyst Biosciences

How Does Total Compensation For Nassim Usman Compare With Other Companies In The Industry?

At the time of writing, our data shows that Catalyst Biosciences, Inc. has a market capitalization of US$132m, and reported total annual CEO compensation of US$1.2m for the year to December 2019. We note that's a decrease of 51% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$525k.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$1.0m. From this we gather that Nassim Usman is paid around the median for CEOs in the industry. What's more, Nassim Usman holds US$126k worth of shares in the company in their own name.

Speaking on an industry level, nearly 25% of total compensation represents salary, while the remainder of 75% is other remuneration. It's interesting to note that Catalyst Biosciences pays out a greater portion of remuneration through salary, compared to the 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 Catalyst Biosciences, Inc.'s Growth Numbers

Catalyst Biosciences, Inc. has seen its earnings per share (EPS) increase by 28% a year over the past three years. In the last year, its revenue is up 21,053%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Catalyst Biosciences, Inc. Been A Good Investment?

With a three year total loss of 15% for the shareholders, Catalyst Biosciences, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As previously discussed, Nassim is compensated close to the median for companies of its size, and which belong to the same industry. At the same time, the company has logged negative shareholder returns over the last three years. But EPS growth is moving in a favorable direction, certainly a positive sign. 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.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 3 warning signs for Catalyst Biosciences you should be aware of, and 2 of them shouldn't be ignored.

Important note: Catalyst Biosciences is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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