Most Shareholders Will Probably Find That The Compensation For Cryoport, Inc.'s (NASDAQ:CYRX) CEO Is Reasonable

Key Insights

• Cryoport will host its Annual General Meeting on 6th of June
• Salary of US$921.2k is part of CEO Jerry Shelton's total remuneration
• The overall pay is 48% below the industry average
• Cryoport's EPS grew by 30% over the past three years while total shareholder loss over the past three years was 78%

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The performance at Cryoport, Inc. (NASDAQ:CYRX) has been rather lacklustre of late and shareholders may be wondering what CEO Jerry Shelton is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 6th of June. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

View our latest analysis for Cryoport

Comparing Cryoport, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Cryoport, Inc. has a market capitalization of US$296m, and reported total annual CEO compensation of US$1.9m for the year to December 2024. We note that's a decrease of 16% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$921k.

In comparison with other companies in the American Life Sciences industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$3.6m. That is to say, Jerry Shelton is paid under the industry median. Moreover, Jerry Shelton also holds US$4.2m worth of Cryoport stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 14% of total compensation represents salary, while the remainder of 86% is other remuneration. Cryoport is paying a higher share of its remuneration through a salary in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Cryoport, Inc.'s Growth

Cryoport, Inc.'s earnings per share (EPS) grew 30% per year over the last three years. Its revenue is up 12% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Cryoport, Inc. Been A Good Investment?

With a total shareholder return of -78% over three years, Cryoport, Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The fact that shareholders have earned a negative share price return is certainly disconcerting. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 3 warning signs for Cryoport (1 doesn't sit too well with us!) that you should be aware of before investing here.

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.