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Should You Be Pleased About The CEO Pay At Cellular Biomedicine Group, Inc.'s (NASDAQ:CBMG)

Simply Wall St

Tony Liu has been the CEO of Cellular Biomedicine Group, Inc. (NASDAQ:CBMG) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. 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 method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Cellular Biomedicine Group

How Does Tony Liu's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Cellular Biomedicine Group, Inc. has a market cap of US$241m, and is paying total annual CEO compensation of US$1.1m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$337k. 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$1.2m.

So Tony Liu is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Cellular Biomedicine Group has changed over time.

NasdaqGS:CBMG CEO Compensation, August 20th 2019

Is Cellular Biomedicine Group, Inc. Growing?

On average over the last three years, Cellular Biomedicine Group, Inc. has shrunk earnings per share by 4.8% each year (measured with a line of best fit). In the last year, its revenue is down -52%.

Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.

Has Cellular Biomedicine Group, Inc. Been A Good Investment?

With a three year total loss of 12%, Cellular Biomedicine Group, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Tony Liu is paid around what is normal the leaders of comparable size companies.

Returns have been disappointing and the company is not growing its earnings per share. Few would argue that it's wise for the company to pay any more, before returns improve. Whatever your view on compensation, you might want to check if insiders are buying or selling Cellular Biomedicine Group shares (free trial).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.