Does ThermoGenesis Holdings, Inc.'s (NASDAQ:THMO) CEO Pay Matter?
Chris Xu has been the CEO of ThermoGenesis Holdings, Inc. (NASDAQ:THMO) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for ThermoGenesis Holdings
How Does Chris Xu's Compensation Compare With Similar Sized Companies?
Our data indicates that ThermoGenesis Holdings, Inc. is worth US$53m, and total annual CEO compensation was reported as US$472k for the year to December 2019. That's actually a decrease on the year before. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$472k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$611k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of ThermoGenesis Holdings. Speaking on an industry level, we can see that nearly 21% of total compensation represents salary, while the remainder of 79% is other remuneration. Speaking on a company level, ThermoGenesis Holdings prefers to tread along a traditional path, disbursing all compensation through a salary.
So Chris Xu is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. You can see a visual representation of the CEO compensation at ThermoGenesis Holdings, below.
Is ThermoGenesis Holdings, Inc. Growing?
ThermoGenesis Holdings, Inc. has seen earnings per share (EPS) move positively by an average of 55% a year, over the last three years (using a line of best fit). It achieved revenue growth of 23% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has ThermoGenesis Holdings, Inc. Been A Good Investment?
With a three year total loss of 73%, ThermoGenesis Holdings, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Chris Xu is paid around the same as most CEOs of similar size companies.
We'd say the company can boast of its EPS growth, but we find the returns over the last three years to be lacking. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. CEO compensation is an important area to keep your eyes on, but we've also identified 3 warning signs for ThermoGenesis Holdings (1 is concerning!) that you should be aware of before investing here.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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. Thank you for reading.
