Here's Why CorMedix Inc.'s (NASDAQ:CRMD) CEO Compensation Is The Least Of Shareholders' Concerns

Key Insights

• CorMedix to hold its Annual General Meeting on 21st of November
• CEO Joe Todisco's total compensation includes salary of US$617.0k
• The overall pay is comparable to the industry average
• CorMedix's total shareholder return over the past three years was 124% while its EPS was down 7.3% over the past three years

CEO Joe Todisco has done a decent job of delivering relatively good performance at CorMedix Inc. (NASDAQ:CRMD) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 21st of November. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for CorMedix

Comparing CorMedix Inc.'s CEO Compensation With The Industry

Our data indicates that CorMedix Inc. has a market capitalization of US$708m, and total annual CEO compensation was reported as US$2.5m for the year to December 2023. Notably, that's a decrease of 15% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$617k.

On comparing similar companies from the American Pharmaceuticals industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$2.9m. This suggests that CorMedix remunerates its CEO largely in line with the industry average. Furthermore, Joe Todisco directly owns US$2.1m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$617k	US$378k	25%
Other	US$1.8m	US$2.5m	75%
Total Compensation	US$2.5m	US$2.9m	100%

On an industry level, around 28% of total compensation represents salary and 72% is other remuneration. There isn't a significant difference between CorMedix and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

CorMedix Inc.'s Growth

Over the last three years, CorMedix Inc. has shrunk its earnings per share by 7.3% per year. In the last year, its revenue is up 41,184%.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has CorMedix Inc. Been A Good Investment?

We think that the total shareholder return of 124%, over three years, would leave most CorMedix Inc. 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...

Some shareholders will be pleased by the relatively good results, however, the results could still be improved. We reckon that there are some shareholders who may be hesitant to increase CEO pay further until EPS growth starts to improve, despite the robust revenue growth.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for CorMedix that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.