Shawn Singh became the CEO of VistaGen Therapeutics, Inc. (NASDAQ:VTGN) in 2011, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether VistaGen Therapeutics pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Shawn Singh Compare With Other Companies In The Industry?
According to our data, VistaGen Therapeutics, Inc. has a market capitalization of US$271m, and paid its CEO total annual compensation worth US$934k over the year to March 2020. That is, the compensation was roughly the same as last year. In particular, the salary of US$498.0k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$1.3m. From this we gather that Shawn Singh is paid around the median for CEOs in the industry. Moreover, Shawn Singh also holds US$118k worth of VistaGen Therapeutics stock directly under their own name.
Talking in terms of the industry, salary represented approximately 25% of total compensation out of all the companies we analyzed, while other remuneration made up 75% of the pie. VistaGen Therapeutics pays out 53% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at VistaGen Therapeutics, Inc.'s Growth Numbers
VistaGen Therapeutics, Inc. has seen its earnings per share (EPS) increase by 44% a year over the past three years. It achieved revenue growth of 166% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has VistaGen Therapeutics, Inc. Been A Good Investment?
Boasting a total shareholder return of 59% over three years, VistaGen Therapeutics, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
As we touched on above, VistaGen Therapeutics, Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. The company is growing EPS and total shareholder returns have been pleasing. Indeed, many might consider that Shawn is compensated rather modestly, given the solid company performance! Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 4 warning signs for VistaGen Therapeutics (of which 2 are significant!) that you should know about in order to have a holistic understanding of the stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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VistaGen Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in developing and commercializing various medicines with the potential to care for anxiety, depression, and other disorders of the central nervous system (CNS).
High growth potential with mediocre balance sheet.