John Sperzel has been the CEO of Chembio Diagnostics, Inc. (NASDAQ:CEMI) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does John Sperzel's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Chembio Diagnostics, Inc. has a market cap of US$97m, and reported total annual CEO compensation of US$1.5m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$417k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$496k.
Thus we can conclude that John Sperzel receives more in total compensation than the median of a group of companies in the same market, and of similar size to Chembio Diagnostics, Inc.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Chembio Diagnostics, below.
Is Chembio Diagnostics, Inc. Growing?
Chembio Diagnostics, Inc. has increased its earnings per share (EPS) by an average of 30% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 16%.
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. It could be important to check this free visual depiction of what analysts expect for the future.
Has Chembio Diagnostics, Inc. Been A Good Investment?
Since shareholders would have lost about 23% over three years, some Chembio Diagnostics, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We examined the amount Chembio Diagnostics, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Chembio Diagnostics.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.