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Here's What We Think About Cesca Therapeutics Inc.'s (NASDAQ:KOOL) CEO Pay

Simply Wall St

Chris Xu has been the CEO of Cesca Therapeutics Inc. (NASDAQ:KOOL) since 2016. 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. 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.

View our latest analysis for Cesca Therapeutics

How Does Chris Xu's Compensation Compare With Similar Sized Companies?

Our data indicates that Cesca Therapeutics Inc. is worth US$13m, and total annual CEO compensation was reported as US$653k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$460k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$509k.

That means Chris Xu receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Cesca Therapeutics, below.

NasdaqCM:KOOL CEO Compensation, October 23rd 2019

Is Cesca Therapeutics Inc. Growing?

Over the last three years Cesca Therapeutics Inc. has grown its earnings per share (EPS) by an average of 74% per year (using a line of best fit). Its revenue is up 32% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. It could be important to check this free visual depiction of what analysts expect for the future.

Has Cesca Therapeutics Inc. Been A Good Investment?

With a three year total loss of 84%, Cesca Therapeutics Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Remuneration for Chris Xu is close enough to the median pay for a CEO of a similar sized company .

We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Cesca Therapeutics (free visualization of insider trades).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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 editorial-team@simplywallst.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.