Yuval Cohen became the CEO of Corbus Pharmaceuticals Holdings, Inc. (NASDAQ:CRBP) in 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does Yuval Cohen's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Corbus Pharmaceuticals Holdings, Inc. has a market cap of US$469m, and is paying total annual CEO compensation of US$3.6m. (This figure is for the year to December 2018). We note that's an increase of 10% above last year. While we always look at total compensation first, we note that the salary component is less, at US$540k. 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$1.8m.
Thus we can conclude that Yuval Cohen receives more in total compensation than the median of a group of companies in the same market, and of similar size to Corbus Pharmaceuticals Holdings, Inc.. However, this doesn't necessarily mean the pay 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 Corbus Pharmaceuticals Holdings has changed from year to year.
Is Corbus Pharmaceuticals Holdings, Inc. Growing?
Corbus Pharmaceuticals Holdings, Inc. has reduced its earnings per share by an average of 40% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 175% over the last year.
The reduction in earnings per share, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has Corbus Pharmaceuticals Holdings, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Corbus Pharmaceuticals Holdings, Inc. for providing a total return of 142% over three years. 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.
We examined the amount Corbus Pharmaceuticals Holdings, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. 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.
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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.