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Jeff Wolf has been the CEO of Heat Biologics, Inc. (NASDAQ:HTBX) since 2008. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Jeff Wolf's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Heat Biologics, Inc. has a market cap of US$16m, and reported total annual CEO compensation of US$1.2m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$417k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$523k.
As you can see, Jeff Wolf is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Heat Biologics, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Heat Biologics has changed from year to year.
Is Heat Biologics, Inc. Growing?
Over the last three years Heat Biologics, Inc. has grown its earnings per share (EPS) by an average of 86% per year (using a line of best fit). In the last year, its revenue is down 29%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Heat Biologics, Inc. Been A Good Investment?
With a three year total loss of 95%, Heat Biologics, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
We examined the amount Heat Biologics, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Whatever your view on compensation, you might want to check if insiders are buying or selling Heat Biologics shares (free trial).
Important note: Heat Biologics may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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