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Is CorMedix, Inc. (NYSEMKT:CRMD) Overpaying Its CEO?

Simply Wall St

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In 2016 Khoso Baluch was appointed CEO of CorMedix, Inc. (NYSEMKT:CRMD). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for CorMedix

How Does Khoso Baluch's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that CorMedix, Inc. has a market cap of US$239m, and is paying total annual CEO compensation of US$587k. (This is based on the year to December 2018). That's a notable increase of 32% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$375k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.0m.

A first glance this seems like a real positive for shareholders, since Khoso Baluch is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.

You can see, below, how CEO compensation at CorMedix has changed over time.

AMEX:CRMD CEO Compensation, April 2nd 2019

Is CorMedix, Inc. Growing?

Over the last three years CorMedix, Inc. has grown its earnings per share (EPS) by an average of 7.1% per year (using a line of best fit). Its revenue is up 31% over last year.

I like the look of the strong year-on-year improvement in revenue. And in that context, the modest EPS improvement certainly isn't shabby. So while I'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! It could be important to check this free visual depiction of what analysts expect for the future.

Has CorMedix, Inc. Been A Good Investment?

Since shareholders would have lost about 35% over three years, some CorMedix, Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

It appears that CorMedix, Inc. remunerates its CEO below most similar sized companies.

Khoso Baluch is paid less than CEOs of similar size companies, but growth hasn't been particularly impressive and the total shareholder return over three years would leave many disappointed. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. Shareholders may want to check for free if CorMedix insiders are buying or selling shares.

If you want to buy a stock that is better than CorMedix, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.