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Gil Van Bokkelen became the CEO of Athersys, Inc. (NASDAQ:ATHX) in 1995. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Gil Van Bokkelen's Compensation Compare With Similar Sized Companies?
According to our data, Athersys, Inc. has a market capitalization of US$208m, and paid its CEO total annual compensation worth US$1.7m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$550k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.1m.
As you can see, Gil Van Bokkelen is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Athersys, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Athersys has changed over time.
Is Athersys, Inc. Growing?
Over the last three years Athersys, Inc. has shrunk its earnings per share by an average of 12% per year (measured with a line of best fit). Its revenue is down 71% over last year.
Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Athersys, Inc. Been A Good Investment?
Athersys, Inc. has generated a total shareholder return of 19% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared total CEO remuneration at Athersys, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us. And shareholder returns are decent but not great. So we doubt many shareholders would consider the CEO pay to be particularly modest! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Athersys (free visualization of insider trades).
If you want to buy a stock that is better than Athersys, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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