Khoso Baluch became the CEO of CorMedix, Inc. (NYSEMKT:CRMD) in 2016. 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 - 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 Khoso Baluch's Compensation Compare With Similar Sized Companies?
Our data indicates that CorMedix, Inc. is worth US$61m, and total annual CEO compensation was reported as US$638k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$375k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$623k.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where CorMedix stands. On an industry level, roughly 34% of total compensation represents salary and 66% is other remuneration. CorMedix is paying a higher share of its remuneration through a salary in comparison to the overall industry.
That means Khoso Baluch receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see a visual representation of the CEO compensation at CorMedix, below.
Is CorMedix, Inc. Growing?
Over the last three years CorMedix, Inc. has grown its earnings per share (EPS) by an average of 36% per year (using a line of best fit). Its revenue is down 34% over last year.
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. Shareholders might be interested in this free visualization of analyst forecasts.
Has CorMedix, Inc. Been A Good Investment?
With a three year total loss of 73%, CorMedix, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Remuneration for Khoso Baluch is close enough to the median pay for a CEO of a similar sized company .
We'd say the company can boast of its EPS growth, but it's disappointing to see negative shareholder returns over three years. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. On another note, CorMedix has 5 warning signs (and 1 which is significant) we think you should know about.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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