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This article will reflect on the compensation paid to Yuval Cohen who has served as CEO of Corbus Pharmaceuticals Holdings, Inc. (NASDAQ:CRBP) since 2014. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Comparing Corbus Pharmaceuticals Holdings, Inc.'s CEO Compensation With the industry
According to our data, Corbus Pharmaceuticals Holdings, Inc. has a market capitalization of US$524m, and paid its CEO total annual compensation worth US$4.0m over the year to December 2019. That's a notable increase of 12% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$559k.
For comparison, other companies in the same industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$2.3m. Hence, we can conclude that Yuval Cohen is remunerated higher than the industry median. Moreover, Yuval Cohen also holds US$514k worth of Corbus Pharmaceuticals Holdings stock directly under their own name.
Talking in terms of the industry, salary represented approximately 23% of total compensation out of all the companies we analyzed, while other remuneration made up 77% of the pie. In Corbus Pharmaceuticals Holdings' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Corbus Pharmaceuticals Holdings, Inc.'s Growth
Corbus Pharmaceuticals Holdings, Inc. has reduced its earnings per share by 25% a year over the last three years. Its revenue is up 494% over the last year.
The reduction in earnings, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Moving away from current form for a second, 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?
Corbus Pharmaceuticals Holdings, Inc. has generated a total shareholder return of 10% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
As we touched on above, Corbus Pharmaceuticals Holdings, Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, revenues will undoubtedly inspire confidence since they've been growing at a healthy pace recently. Shareholder returns have also grown during this time, but haven't been as impressive. Importantly, earnings growth is negative, a worrying trend. All things considered, we don't think CEO compensation is unfair, though shareholders will likely want to see an overall improvement in performance before any potential raise.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for Corbus Pharmaceuticals Holdings you should be aware of, and 1 of them is concerning.
Switching gears from Corbus Pharmaceuticals Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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.
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