Terren Peizer has been the CEO of Catasys, Inc. (NASDAQ:CATS) since 2003. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Terren Peizer’s Compensation Compare With Similar Sized Companies?
According to our data, Catasys, Inc. has a market capitalization of US$157m, and pays its CEO total annual compensation worth US$2.4m. (This is based on the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at US$450k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO compensation was US$964k.
It would therefore appear that Catasys, Inc. pays Terren Peizer more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. 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 Catasys has changed over time.
Is Catasys, Inc. Growing?
Catasys, Inc. has increased its earnings per share (EPS) by an average of 25% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 49%.
This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.
Has Catasys, Inc. Been A Good Investment?
Boasting a total shareholder return of 212% over three years, Catasys, Inc. has done well by shareholders. 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.
We compared total CEO remuneration at Catasys, 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, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Catasys (free visualization of insider trades).
If you want to buy a stock that is better than Catasys, this free list of high return, low debt companies is a great place to look.
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