Tim Miller has been the CEO of Abeona Therapeutics Inc. (NASDAQ:ABEO) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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 Tim Miller’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Abeona Therapeutics Inc. has a market cap of US$314m, and is paying total annual CEO compensation of US$1.7m. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$375k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO compensation was US$1.6m.
So Tim Miller 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.
The graphic below shows how CEO compensation at Abeona Therapeutics has changed from year to year.
Is Abeona Therapeutics Inc. Growing?
On average over the last three years, Abeona Therapeutics Inc. has shrunk earnings per share by 1.7% each year. In the last year, its revenue is up 508%.
Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Abeona Therapeutics Inc. Been A Good Investment?
Most shareholders would probably be pleased with Abeona Therapeutics Inc. for providing a total return of 81% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Tim Miller is paid around what is normal the leaders of comparable size companies.
While the growth could be better, the shareholder returns are clearly good. So all things considered I’d venture that the CEO pay is appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Abeona Therapeutics.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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.