Jerry Jabbour has been the CEO of Matinas BioPharma Holdings, Inc. (NYSEMKT:MTNB) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Matinas BioPharma Holdings.
How Does Total Compensation For Jerry Jabbour Compare With Other Companies In The Industry?
Our data indicates that Matinas BioPharma Holdings, Inc. has a market capitalization of US$157m, and total annual CEO compensation was reported as US$1.3m for the year to December 2019. That's just a smallish increase of 5.6% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$445k.
For comparison, other companies in the same industry with market capitalizations ranging between US$100m and US$400m had a median total CEO compensation of US$1.6m. This suggests that Matinas BioPharma Holdings remunerates its CEO largely in line with the industry average. Furthermore, Jerry Jabbour directly owns US$634k worth of shares in the company.
Talking in terms of the industry, salary represented approximately 23% of total compensation out of all the companies we analyzed, while other remuneration made up 77% of the pie. It's interesting to note that Matinas BioPharma Holdings pays out a greater portion of remuneration through salary, compared to the industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Matinas BioPharma Holdings, Inc.'s Growth Numbers
Matinas BioPharma Holdings, Inc.'s earnings per share (EPS) grew 49% per year over the last three years. In the last year, the company lost virtually all of its revenue.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Matinas BioPharma Holdings, Inc. Been A Good Investment?
Since shareholders would have lost about 39% over three years, some Matinas BioPharma Holdings, Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As we touched on above, Matinas BioPharma Holdings, 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. At the same time, the company has logged negative shareholder returns over the last three years. However, EPS growth is positive over the same time frame. Considering positive EPS growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.
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 3 warning signs (and 1 which makes us a bit uncomfortable) in Matinas BioPharma Holdings we think you should know about.
Important note: Matinas BioPharma Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
If you’re looking to trade Matinas BioPharma Holdings, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.
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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email firstname.lastname@example.org.