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How Does ClearPoint Neuro's (NASDAQ:CLPT) CEO Salary Compare to Peers?

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Simply Wall St
·3 min read
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This article will reflect on the compensation paid to Joe Burnett who has served as CEO of ClearPoint Neuro, Inc. (NASDAQ:CLPT) since 2017. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for ClearPoint Neuro

How Does Total Compensation For Joe Burnett Compare With Other Companies In The Industry?

According to our data, ClearPoint Neuro, Inc. has a market capitalization of US$233m, and paid its CEO total annual compensation worth US$864k over the year to December 2019. We note that's an increase of 68% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$366k.

On comparing similar companies from the same industry with market caps ranging from US$100m to US$400m, we found that the median CEO total compensation was US$691k. This suggests that ClearPoint Neuro remunerates its CEO largely in line with the industry average. What's more, Joe Burnett holds US$3.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2019

2018

Proportion (2019)

Salary

US$366k

US$360k

42%

Other

US$498k

US$155k

58%

Total Compensation

US$864k

US$515k

100%

On an industry level, around 21% of total compensation represents salary and 79% is other remuneration. It's interesting to note that ClearPoint Neuro pays out a greater portion of remuneration through salary, compared to the industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
ceo-compensation

ClearPoint Neuro, Inc.'s Growth

Over the past three years, ClearPoint Neuro, Inc. has seen its earnings per share (EPS) grow by 33% per year. Its revenue is up 20% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has ClearPoint Neuro, Inc. Been A Good Investment?

Boasting a total shareholder return of 403% over three years, ClearPoint Neuro, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

As we noted earlier, ClearPoint Neuro pays its CEO in line with similar-sized companies belonging to the same industry. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. In fact, shareholders might even think the CEO deserves a raise as a reward due to the fantastic returns generated.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for ClearPoint Neuro that investors should look into moving forward.

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.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.