Is Cytosorbents Corporation’s (NASDAQ:CTSO) CEO Pay Fair?
Phillip Chan became the CEO of Cytosorbents Corporation (NASDAQ:CTSO) in 2009. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
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How Does Phillip Chan’s Compensation Compare With Similar Sized Companies?
According to our data, Cytosorbents Corporation has a market capitalization of US$255m, and pays its CEO total annual compensation worth US$816k. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$378k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$967k.
So Phillip Chan is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Cytosorbents, below.
Is Cytosorbents Corporation Growing?
Earnings per share at Cytosorbents Corporation are much the same as they were three years ago, albeit slightly higher. It achieved revenue growth of 55% over the last year.
I like the look of the strong year-on-year improvement in revenue. Combined with modest EPS growth, we get a good impression of the company. 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 Cytosorbents Corporation Been A Good Investment?
I think that the total shareholder return of 74%, over three years, would leave most Cytosorbents Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
Remuneration for Phillip Chan is close enough to the median pay for a CEO of a similar sized company .
While the growth could be better, the shareholder returns are clearly good. So we can conclude that on this analysis the CEO compensation seems pretty sound. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Cytosorbents.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
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.
