Linda Marbán became the CEO of Capricor Therapeutics, Inc. (NASDAQ:CAPR) in 2010. First, this article will compare CEO compensation with compensation at similar sized companies. 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 method should give us information to assess how appropriately the company pays the CEO.
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How Does Linda Marbán’s Compensation Compare With Similar Sized Companies?
Our data indicates that Capricor Therapeutics, Inc. is worth US$16m, and total annual CEO compensation is US$602k. (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$233k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$303k.
It would therefore appear that Capricor Therapeutics, Inc. pays Linda Marbán 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 get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Capricor Therapeutics has changed from year to year.
Is Capricor Therapeutics, Inc. Growing?
On average over the last three years, Capricor Therapeutics, Inc. has grown earnings per share (EPS) by 60% each year (using a line of best fit). In the last year, its revenue is down -52%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Capricor Therapeutics, Inc. Been A Good Investment?
Since shareholders would have lost about 68% over three years, some Capricor Therapeutics, Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at Capricor Therapeutics, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. So you may want to check if insiders are buying Capricor Therapeutics shares with their own money (free access).
Or you might rather take a peek at this analytical visualization of historic cash flow, 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.