Mark Baum has been the CEO of Imprimis Pharmaceuticals Inc (NASDAQ:IMMY) since 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Mark Baum’s Compensation Compare With Similar Sized Companies?
Our data indicates that Imprimis Pharmaceuticals Inc is worth US$49m, and total annual CEO compensation is US$913k. That’s actually a decrease on the year before. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$288k.
As you can see, Mark Baum is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Imprimis Pharmaceuticals 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 Imprimis Pharmaceuticals has changed over time.
Is Imprimis Pharmaceuticals Inc Growing?
Imprimis Pharmaceuticals Inc has increased its earnings per share (EPS) by an average of 34% a year, over the last three years Its revenue is up 40% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.
We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Imprimis Pharmaceuticals Inc Been A Good Investment?
Given the total loss of 67% over three years, many shareholders in Imprimis Pharmaceuticals Inc are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at Imprimis Pharmaceuticals 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.
However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Imprimis Pharmaceuticals Inc (free visualization of insider trades).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.