Is Coherus BioSciences Inc’s (NASDAQ:CHRS) CEO Paid Enough Relative To Peers?
Denny Lanfear became the CEO of Coherus BioSciences Inc (NASDAQ:CHRS) in 2010. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Coherus BioSciences
How Does Denny Lanfear’s Compensation Compare With Similar Sized Companies?
According to our data, Coherus BioSciences Inc has a market capitalization of US$758m, and pays its CEO total annual compensation worth US$2.7m. That’s less than last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.2m.
So Denny Lanfear receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Coherus BioSciences, below.
Is Coherus BioSciences Inc Growing?
Over the last three years Coherus BioSciences Inc has grown its earnings per share (EPS) by an average of 22% per year. It saw its revenue drop -100% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Coherus BioSciences Inc Been A Good Investment?
Since shareholders would have lost about 59% over three years, some Coherus BioSciences Inc shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
Denny Lanfear is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Coherus BioSciences Inc.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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 editorial-team@simplywallst.com.
