In 2010 Susan Molineaux was appointed CEO of Calithera Biosciences, Inc. (NASDAQ:CALA). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.
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How Does Susan Molineaux’s Compensation Compare With Similar Sized Companies?
Our data indicates that Calithera Biosciences, Inc. is worth US$167m, and total annual CEO compensation is US$761k. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$504k. 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.
That means Susan Molineaux receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Calithera Biosciences has changed from year to year.
Is Calithera Biosciences, Inc. Growing?
On average over the last three years, Calithera Biosciences, Inc. has grown earnings per share (EPS) by 26% each year (using a line of best fit). In the last year, its revenue is up 58%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Calithera Biosciences, Inc. Been A Good Investment?
With a three year total loss of 10%, Calithera Biosciences, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Susan Molineaux is paid around what is normal the leaders of comparable size companies.
We like that the company is growing EPS, but it’s disappointing to see negative shareholder returns over three years. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Shareholders may want to check for free if Calithera Biosciences insiders are buying or selling shares.
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 email@example.com.