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How Should Investors Feel About Compugen Ltd.'s (NASDAQ:CGEN) CEO Pay?

Simply Wall St

Anat Cohen-Dayag became the CEO of Compugen Ltd. (NASDAQ:CGEN) in 2010. 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. 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.

See our latest analysis for Compugen

How Does Anat Cohen-Dayag's Compensation Compare With Similar Sized Companies?

According to our data, Compugen Ltd. has a market capitalization of US$248m, and pays its CEO total annual compensation worth US$854k. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$391k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.3m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.

The graphic below shows how CEO compensation at Compugen has changed from year to year.

NasdaqGM:CGEN CEO Compensation, August 28th 2019
NasdaqGM:CGEN CEO Compensation, August 28th 2019

Is Compugen Ltd. Growing?

Compugen Ltd. has increased its earnings per share (EPS) by an average of 5.4% a year, over the last three years (using a line of best fit). It saw its revenue drop -22% over the last year.

I would argue that the lack of revenue growth in the last year is less than ideal, but I'm happy with the EPS 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. It could be important to check this free visual depiction of what analysts expect for the future.

Has Compugen Ltd. Been A Good Investment?

With a three year total loss of 43%, Compugen Ltd. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

It looks like Compugen Ltd. pays its CEO less than similar sized companies.

Anat Cohen-Dayag is paid less than CEOs of similar size companies, but growth hasn't been particularly impressive and the total shareholder return over three years would leave many disappointed. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. So you may want to check if insiders are buying Compugen shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.