Why We Think Shareholders May Be Considering Bumping Up CollPlant Biotechnologies Ltd.'s (NASDAQ:CLGN) CEO Compensation

The impressive results at CollPlant Biotechnologies Ltd. (NASDAQ:CLGN) recently will be great news for shareholders. At the upcoming AGM on 04 August 2021, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Check out our latest analysis for CollPlant Biotechnologies

Comparing CollPlant Biotechnologies Ltd.'s CEO Compensation With the industry

According to our data, CollPlant Biotechnologies Ltd. has a market capitalization of US$168m, and paid its CEO total annual compensation worth US$761k over the year to December 2020. This means that the compensation hasn't changed much from last year. In particular, the salary of US$391.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the industry with market capitalizations between US$100m and US$400m, we discovered that the median CEO total compensation of that group was US$1.9m. That is to say, Yehiel Tal is paid under the industry median. Moreover, Yehiel Tal also holds US$511k worth of CollPlant Biotechnologies stock directly under their own name.

Component	2020	2019	Proportion (2020)
Salary	US$391k	US$395k	51%
Other	US$370k	US$389k	49%
Total Compensation	US$761k	US$784k	100%

On an industry level, roughly 20% of total compensation represents salary and 80% is other remuneration. It's interesting to note that CollPlant Biotechnologies pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

CollPlant Biotechnologies Ltd.'s Growth

Over the past three years, CollPlant Biotechnologies Ltd. has seen its earnings per share (EPS) grow by 31% per year. It achieved revenue growth of 758% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has CollPlant Biotechnologies Ltd. Been A Good Investment?

We think that the total shareholder return of 170%, over three years, would leave most CollPlant Biotechnologies Ltd. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for CollPlant Biotechnologies (of which 2 are a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from CollPlant Biotechnologies, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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