In 2013 Vered Caplan was appointed CEO of Orgenesis Inc. (NASDAQ:ORGS). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Vered Caplan’s Compensation Compare With Similar Sized Companies?
According to our data, Orgenesis Inc. has a market capitalization of US$79m, and pays its CEO total annual compensation worth US$2.0m. (This figure is for the year to November 2018). Notably, that’s an increase of 81% over the year before. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$226k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$415k.
It would therefore appear that Orgenesis Inc. pays Vered Caplan more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Orgenesis has changed over time.
Is Orgenesis Inc. Growing?
Orgenesis Inc. has reduced its earnings per share by an average of 11% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 85%.
Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. 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. Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Orgenesis Inc. Been A Good Investment?
Most shareholders would probably be pleased with Orgenesis Inc. for providing a total return of 46% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared total CEO remuneration at Orgenesis Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. So, considering these tasty returns, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Orgenesis (free visualization of insider trades).
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.