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Sunil Bhonsle has been the CEO of Titan Pharmaceuticals, Inc. (NASDAQ:TTNP) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Titan Pharmaceuticals.
Comparing Titan Pharmaceuticals, Inc.'s CEO Compensation With the industry
At the time of writing, our data shows that Titan Pharmaceuticals, Inc. has a market capitalization of US$21m, and reported total annual CEO compensation of US$684k for the year to December 2019. That's a notable increase of 31% on last year. We note that the salary portion, which stands at US$417.1k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$915k. So it looks like Titan Pharmaceuticals compensates Sunil Bhonsle in line with the median for the industry.
On an industry level, around 24% of total compensation represents salary and 76% is other remuneration. It's interesting to note that Titan Pharmaceuticals pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Titan Pharmaceuticals, Inc.'s Growth Numbers
Titan Pharmaceuticals, Inc.'s earnings per share (EPS) grew 71% per year over the last three years. It achieved revenue growth of 12% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Titan Pharmaceuticals, Inc. Been A Good Investment?
With a three year total loss of 98% for the shareholders, Titan Pharmaceuticals, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
As we touched on above, Titan Pharmaceuticals, Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. However, EPS growth is positive over the same time frame. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 6 warning signs (and 2 which are significant) in Titan Pharmaceuticals we think you should know about.
Switching gears from Titan Pharmaceuticals, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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.
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