How Should Investors React To iBio, Inc.'s (NYSEMKT:IBIO) CEO Pay?
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Robert Kay became the CEO of iBio, Inc. (NYSEMKT:IBIO) in 2008. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for iBio
How Does Robert Kay's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that iBio, Inc. has a market cap of US$15m, and is paying total annual CEO compensation of US$315k. (This is based on the year to June 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$315k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$453k.
A first glance this seems like a real positive for shareholders, since Robert Kay is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at iBio has changed from year to year.
Is iBio, Inc. Growing?
Earnings per share at iBio, Inc. are much the same as they were three years ago, albeit slightly lower, based on the trend. In the last year, its revenue is up 163%.
Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has iBio, Inc. Been A Good Investment?
Given the total loss of 88% over three years, many shareholders in iBio, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
It appears that iBio, Inc. remunerates its CEO below most similar sized companies.
Robert Kay receives relatively low remuneration compared to similar sized companies. But the company isn't exactly firing on all cylinders, and returns over three years are not good. So while shareholders shouldn't be overly concerned about CEO compensation, they would probably like to see improved shareholder returns before seeing a pay increase. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling iBio (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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.
