Ronnie Morris has been the CEO of Champions Oncology, Inc. (NASDAQ:CSBR) since 2017. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Ronnie Morris's Compensation Compare With Similar Sized Companies?
According to our data, Champions Oncology, Inc. has a market capitalization of US$63m, and pays its CEO total annual compensation worth US$146k. (This number is for the twelve months until April 2019). That's actually a decrease on the year before. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$146k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$492k.
A first glance this seems like a real positive for shareholders, since Ronnie Morris 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.
You can see a visual representation of the CEO compensation at Champions Oncology, below.
Is Champions Oncology, Inc. Growing?
Over the last three years Champions Oncology, Inc. has grown its earnings per share (EPS) by an average of 95% per year (using a line of best fit). It achieved revenue growth of 34% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.
Has Champions Oncology, Inc. Been A Good Investment?
I think that the total shareholder return of 248%, over three years, would leave most Champions Oncology, Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
It looks like Champions Oncology, Inc. pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Ronnie Morris deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. It would be even more positive if company insiders are buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Champions Oncology.
If you want to buy a stock that is better than Champions Oncology, this free list of high return, low debt companies is a great place to look.
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