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In 2010 Denny Lanfear was appointed CEO of Coherus BioSciences, Inc. (NASDAQ:CHRS). 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Denny Lanfear’s Compensation Compare With Similar Sized Companies?
According to our data, Coherus BioSciences, Inc. has a market capitalization of US$1.6b, and pays its CEO total annual compensation worth US$3.9m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$702k. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.0m.
That means Denny Lanfear receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Coherus BioSciences has changed over time.
Is Coherus BioSciences, Inc. Growing?
Over the last three years Coherus BioSciences, Inc. has grown its earnings per share (EPS) by an average of 18% per year (using a line of best fit). Its revenue is up 2559% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
Has Coherus BioSciences, Inc. Been A Good Investment?
Coherus BioSciences, Inc. has generated a total shareholder return of 3.7% over three years, so most shareholders wouldn’t be too disappointed. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Denny Lanfear is paid around what is normal the leaders of comparable size companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So upon reflection one could argue that the CEO pay is quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Coherus BioSciences.
If you want to buy a stock that is better than Coherus BioSciences, this free list of high return, low debt companies is a great place to look.
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 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.