Does Cleveland BioLabs, Inc.'s (NASDAQ:CBLI) CEO Pay Matter?

By
Simply Wall St
Published
December 03, 2019

Yakov Kogan has been the CEO of Cleveland BioLabs, Inc. (NASDAQ:CBLI) since 2012. 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.

View our latest analysis for Cleveland BioLabs

How Does Yakov Kogan's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Cleveland BioLabs, Inc. has a market cap of US$9.6m, and reported total annual CEO compensation of US$287k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$276k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$503k.

Most shareholders would consider it a positive that Yakov Kogan takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see a visual representation of the CEO compensation at Cleveland BioLabs, below.

NasdaqCM:CBLI CEO Compensation, December 3rd 2019

Is Cleveland BioLabs, Inc. Growing?

On average over the last three years, Cleveland BioLabs, Inc. has grown earnings per share (EPS) by 14% each year (using a line of best fit). Its revenue is down 45% over last year.

This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Cleveland BioLabs, Inc. Been A Good Investment?

Since shareholders would have lost about 51% over three years, some Cleveland BioLabs, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

It looks like Cleveland BioLabs, Inc. pays its CEO less than similar sized companies.

Considering the underlying business is growing earnings, this would suggest the pay is modest. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. We're not critical of the remuneration Yakov Kogan receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Cleveland BioLabs (free visualization of insider trades).

Important note: Cleveland BioLabs 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.

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. Thank you for reading.

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