In 2014 Yuval Cohen was appointed CEO of Corbus Pharmaceuticals Holdings, Inc. (NASDAQ:CRBP). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Yuval Cohen’s Compensation Compare With Similar Sized Companies?
According to our data, Corbus Pharmaceuticals Holdings, Inc. has a market capitalization of US$365m, and pays its CEO total annual compensation worth US$3.2m. (This figure is for the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$463k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO compensation of that group was US$1.5m.
It would therefore appear that Corbus Pharmaceuticals Holdings, Inc. pays Yuval Cohen 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 better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Corbus Pharmaceuticals Holdings, below.
Is Corbus Pharmaceuticals Holdings, Inc. Growing?
Over the last three years Corbus Pharmaceuticals Holdings, Inc. has shrunk its earnings per share by an average of 39% per year (measured with a line of best fit). It achieved revenue growth of 2.8% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. The modest increase in revenue in the last year isn’t enough to make me overlook the disappointing change in earnings per share. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.
Has Corbus Pharmaceuticals Holdings, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Corbus Pharmaceuticals Holdings, Inc. for providing a total return of 245% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We examined the amount Corbus Pharmaceuticals Holdings, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.We think many shareholders would be underwhelmed with the business growth over the last three years.
However, we can’t argue with the strong returns to shareholders, over the same time period. Considering this, shareholders are probably not too worried about the CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Corbus Pharmaceuticals Holdings (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.