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Does Corbus Pharmaceuticals Holdings, Inc.'s (NASDAQ:CRBP) CEO Pay Matter?

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Simply Wall St
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Yuval Cohen became the CEO of Corbus Pharmaceuticals Holdings, Inc. (NASDAQ:CRBP) in 2014. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Corbus Pharmaceuticals Holdings

How Does Yuval Cohen's Compensation Compare With Similar Sized Companies?

Our data indicates that Corbus Pharmaceuticals Holdings, Inc. is worth US$331m, and total annual CEO compensation was reported as US$3.6m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$540k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.7m.

As you can see, Yuval Cohen is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Corbus Pharmaceuticals Holdings, 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 Corbus Pharmaceuticals Holdings has changed over time.

NasdaqGM:CRBP CEO Compensation, December 19th 2019
NasdaqGM:CRBP CEO Compensation, December 19th 2019

Is Corbus Pharmaceuticals Holdings, Inc. Growing?

On average over the last three years, Corbus Pharmaceuticals Holdings, Inc. has shrunk earnings per share by 30% each year (measured with a line of best fit). In the last year, its revenue is up 1126%.

Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. It could be important to check this free visual depiction of what analysts expect for the future.

Has Corbus Pharmaceuticals Holdings, Inc. Been A Good Investment?

Given the total loss of 37% over three years, many shareholders in Corbus Pharmaceuticals Holdings, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We compared the total CEO remuneration paid by Corbus Pharmaceuticals Holdings, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. So you may want to check if insiders are buying Corbus Pharmaceuticals Holdings shares with their own money (free access).

If you want to buy a stock that is better than Corbus Pharmaceuticals Holdings, this free list of high return, low debt companies is a great place to look.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.

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. Thank you for reading.