Should Shareholders Reconsider Corbus Pharmaceuticals Holdings, Inc.'s (NASDAQ:CRBP) CEO Compensation Package?

Corbus Pharmaceuticals Holdings, Inc. (NASDAQ:CRBP) has not performed well recently and CEO Yuval Cohen will probably need to up their game. At the upcoming AGM on 20 May 2021, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for Corbus Pharmaceuticals Holdings

How Does Total Compensation For Yuval Cohen Compare With Other Companies In The Industry?

Our data indicates that Corbus Pharmaceuticals Holdings, Inc. has a market capitalization of US$174m, and total annual CEO compensation was reported as US$2.9m for the year to December 2020. We note that's a decrease of 28% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$559k.

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$1.7m. Accordingly, our analysis reveals that Corbus Pharmaceuticals Holdings, Inc. pays Yuval Cohen north of the industry median. What's more, Yuval Cohen holds US$105k worth of shares in the company in their own name.

Component	2020	2019	Proportion (2020)
Salary	US$559k	US$559k	19%
Other	US$2.3m	US$3.4m	81%
Total Compensation	US$2.9m	US$4.0m	100%

On an industry level, roughly 20% of total compensation represents salary and 80% is other remuneration. Our data reveals that Corbus Pharmaceuticals Holdings allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Corbus Pharmaceuticals Holdings, Inc.'s Growth

Corbus Pharmaceuticals Holdings, Inc. has reduced its earnings per share by 29% a year over the last three years. In the last year, its revenue is down 89%.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

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

The return of -77% over three years would not have pleased Corbus Pharmaceuticals Holdings, Inc. shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 5 warning signs (and 1 which doesn't sit too well with us) in Corbus Pharmaceuticals Holdings we think you should know about.

Switching gears from Corbus Pharmaceuticals Holdings, 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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