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Is Orgenesis Inc. (NASDAQ:ORGS) Excessively Paying Its CEO?

Simply Wall St

Vered Caplan has been the CEO of Orgenesis Inc. (NASDAQ:ORGS) since 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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.

View our latest analysis for Orgenesis

How Does Vered Caplan's Compensation Compare With Similar Sized Companies?

Our data indicates that Orgenesis Inc. is worth US$72m, and total annual CEO compensation is US$2.0m. (This is based on the year to November 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$226k. 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$477k.

Thus we can conclude that Vered Caplan receives more in total compensation than the median of a group of companies in the same market, and of similar size to Orgenesis Inc.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at Orgenesis has changed over time.

NasdaqCM:ORGS CEO Compensation, September 10th 2019

Is Orgenesis Inc. Growing?

On average over the last three years, Orgenesis Inc. has shrunk earnings per share by 11% each year (measured with a line of best fit). It achieved revenue growth of 85% over the last year.

As investors, we are a bit wary of companies that have lower earnings per share, over three years. But on the other hand, revenue growth is strong, suggesting a brighter future. 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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Orgenesis Inc. Been A Good Investment?

Since shareholders would have lost about 12% over three years, some Orgenesis Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared the total CEO remuneration paid by Orgenesis Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Orgenesis.

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.