Is Corbus Pharmaceuticals Holdings, Inc.’s (NASDAQ:CRBP) CEO Paid Enough Relative To Peers?

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Yuval Cohen has been the CEO of Corbus Pharmaceuticals Holdings, Inc. (NASDAQ:CRBP) since 2014. 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. 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.

See our latest analysis for Corbus Pharmaceuticals Holdings

How Does Yuval Cohen’s Compensation Compare With Similar Sized Companies?

Our data indicates that Corbus Pharmaceuticals Holdings, Inc. is worth US$436m, and total annual CEO compensation is US$3.6m. (This figure is for the year to December 2018). Notably, that’s an increase of 10% over the year before. While we always look at total compensation first, we note that the salary component is less, at US$540k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.8m.

As you can see, Yuval Cohen is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Corbus Pharmaceuticals Holdings, Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see, below, how CEO compensation at Corbus Pharmaceuticals Holdings has changed over time.

NasdaqGM:CRBP CEO Compensation, June 6th 2019
NasdaqGM:CRBP CEO Compensation, June 6th 2019

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 40% per year (measured with a line of best fit). It achieved revenue growth of 175% over the last year.

The reduction in earnings per share, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. Shareholders might be interested in this free visualization of analyst forecasts.

Has Corbus Pharmaceuticals Holdings, Inc. Been A Good Investment?

I think that the total shareholder return of 129%, over three years, would leave most Corbus Pharmaceuticals Holdings, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

We compared total CEO remuneration at Corbus Pharmaceuticals Holdings, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. Considering this fine result for investors, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling Corbus Pharmaceuticals Holdings shares (free trial).

If you want to buy a stock that is better than Corbus Pharmaceuticals Holdings, 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 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. Thank you for reading.