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Is Cryoport, Inc.'s (NASDAQ:CYRX) CEO Paid At A Competitive Rate?

Simply Wall St

In 2012 Jerrell Shelton was appointed CEO of Cryoport, Inc. (NASDAQ:CYRX). 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. This method should give us information to assess how appropriately the company pays the CEO.

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View our latest analysis for Cryoport

How Does Jerrell Shelton's Compensation Compare With Similar Sized Companies?

According to our data, Cryoport, Inc. has a market capitalization of US$483m, and pays its CEO total annual compensation worth US$2.8m. (This is based on the year to December 2018). Notably, that's an increase of 82% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$581k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.7m.

Thus we can conclude that Jerrell Shelton receives more in total compensation than the median of a group of companies in the same market, and of similar size to Cryoport, Inc.. However, this doesn't necessarily mean the pay 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 a visual representation of the CEO compensation at Cryoport, below.

NasdaqCM:CYRX CEO Compensation, May 15th 2019

Is Cryoport, Inc. Growing?

Cryoport, Inc. has increased its earnings per share (EPS) by an average of 64% a year, over the last three years (using a line of best fit). Its revenue is up 68% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Shareholders might be interested in this free visualization of analyst forecasts.

Has Cryoport, Inc. Been A Good Investment?

Boasting a total shareholder return of 778% over three years, Cryoport, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We compared the total CEO remuneration paid by Cryoport, Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Cryoport.

Important note: Cryoport may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.