In 2010 Denny Lanfear was appointed CEO of Coherus BioSciences Inc (NASDAQ:CHRS). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. 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$820m, and pays its CEO total annual compensation worth US$3m. That’s below the compensation, last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$1m.
It would therefore appear that Coherus BioSciences Inc pays Denny Lanfear more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
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 21% per year. Its revenue is down -100% over last year.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. So this free visual report on analyst forecasts could hold they key to an excellent investment decision.
Has Coherus BioSciences Inc Been A Good Investment?
Given the total loss of 56% over three years, many shareholders in Coherus BioSciences Inc are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
We compared the total CEO remuneration paid by Coherus BioSciences Inc, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark 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. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. High CEO remuneration is not great, but it certainly doesn’t mean a stock will perform poorly. Still, shareholders might want to check if insiders have been selling.
Of course Coherus BioSciences may not be the best stock to buy. So you may wish to see this free collection of other companies that have high ROE and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.