Jim Neal became the CEO of XOMA Corporation (NASDAQ:XOMA) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Jim Neal's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that XOMA Corporation has a market cap of US$168m, and is paying total annual CEO compensation of US$1.3m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$484k. 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$1.2m.
That means Jim Neal 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, below, how CEO compensation at XOMA has changed over time.
Is XOMA Corporation Growing?
On average over the last three years, XOMA Corporation has grown earnings per share (EPS) by 54% each year (using a line of best fit). It saw its revenue drop -74% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. You might want to check this free visual report on analyst forecasts for future earnings.
Has XOMA Corporation Been A Good Investment?
I think that the total shareholder return of 49%, over three years, would leave most XOMA Corporation shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Remuneration for Jim Neal is close enough to the median pay for a CEO of a similar sized company .
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if XOMA insiders are buying or selling shares.
Important note: XOMA may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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