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Jill Milne became the CEO of Catabasis Pharmaceuticals, Inc. (NASDAQ:CATB) in 2008. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Jill Milne's Compensation Compare With Similar Sized Companies?
According to our data, Catabasis Pharmaceuticals, Inc. has a market capitalization of US$86m, and pays its CEO total annual compensation worth US$1.1m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$476k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$471k.
As you can see, Jill Milne is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Catabasis Pharmaceuticals, Inc. is paying too much. 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, below, how CEO compensation at Catabasis Pharmaceuticals has changed over time.
Is Catabasis Pharmaceuticals, Inc. Growing?
Over the last three years Catabasis Pharmaceuticals, Inc. has grown its earnings per share (EPS) by an average of 54% per year (using a line of best fit). Revenue was pretty flat on last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has Catabasis Pharmaceuticals, Inc. Been A Good Investment?
With a three year total loss of 80%, Catabasis Pharmaceuticals, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Catabasis Pharmaceuticals, 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.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Shareholders may want to check for free if Catabasis Pharmaceuticals insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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. Thank you for reading.