What Did Harrow Health, Inc.’s (NASDAQ:HROW) CEO Take Home Last Year?
In 2012 Mark Baum was appointed CEO of Harrow Health, Inc. (NASDAQ:HROW). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. 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 Mark Baum’s Compensation Compare With Similar Sized Companies?
Our data indicates that Harrow Health, Inc. is worth US$125m, and total annual CEO compensation is US$913k. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$417k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$303k.
It would therefore appear that Harrow Health, Inc. pays Mark Baum 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. 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 Harrow Health, below.
Is Harrow Health, Inc. Growing?
On average over the last three years, Harrow Health, Inc. has grown earnings per share (EPS) by 46% each year (using a line of best fit). It achieved revenue growth of 48% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Harrow Health, Inc. Been A Good Investment?
Given the total loss of 0.8% over three years, many shareholders in Harrow Health, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We compared total CEO remuneration at Harrow Health, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. 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. So you may want to check if insiders are buying Harrow Health shares with their own money (free access).
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 editorial-team@simplywallst.com.
