Roger Pomerantz has been the CEO of Seres Therapeutics, Inc. (NASDAQ:MCRB) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Roger Pomerantz’s Compensation Compare With Similar Sized Companies?
Our data indicates that Seres Therapeutics, Inc. is worth US$197m, and total annual CEO compensation is US$2.9m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$581k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO compensation was US$986k.
As you can see, Roger Pomerantz is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Seres Therapeutics, 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.
The graphic below shows how CEO compensation at Seres Therapeutics has changed from year to year.
Is Seres Therapeutics, Inc. Growing?
Over the last three years, Seres Therapeutics, Inc. has not seen its earnings per share change much, though they have improved slightly. Its revenue is down -35% over last year.
I generally like to see a little revenue growth, but I’m happy with the modest EPS growth. 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 Seres Therapeutics, Inc. Been A Good Investment?
Given the total loss of 83% over three years, many shareholders in Seres Therapeutics, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Seres Therapeutics, 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, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Although we’d stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling Seres Therapeutics shares (free trial).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.