Nassim Usman became the CEO of Catalyst Biosciences Inc (NASDAQ:CBIO) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Nassim Usman’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Catalyst Biosciences Inc has a market cap of US$131m, and is paying total annual CEO compensation of US$1.8m. Notably, that’s an increase of 222% over the year before. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$292k.
It would therefore appear that Catalyst Biosciences Inc pays Nassim Usman more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Catalyst Biosciences has changed from year to year.
Is Catalyst Biosciences Inc Growing?
Catalyst Biosciences Inc has increased its earnings per share (EPS) by an average of 92% a year, over the last three years In the last year, its revenue is down -58%.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Catalyst Biosciences Inc Been A Good Investment?
Given the total loss of 77% over three years, many shareholders in Catalyst Biosciences Inc are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by Catalyst Biosciences Inc, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. This contrasts with the growth in CEO remuneration, in the last year. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings 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 firstname.lastname@example.org.