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Chris Xu has been the CEO of ThermoGenesis Holdings, Inc. (NASDAQ:THMO) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether ThermoGenesis Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Chris Xu Compare With Other Companies In The Industry?
At the time of writing, our data shows that ThermoGenesis Holdings, Inc. has a market capitalization of US$15m, and reported total annual CEO compensation of US$472k for the year to December 2019. We note that's a decrease of 28% compared to last year. Notably, the salary of US$472k is the entirety of the CEO compensation.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$554k. This suggests that ThermoGenesis Holdings remunerates its CEO largely in line with the industry average.
Speaking on an industry level, nearly 21% of total compensation represents salary, while the remainder of 79% is other remuneration. At the company level, ThermoGenesis Holdings pays Chris Xu solely through a salary, preferring to go down a conventional route. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at ThermoGenesis Holdings, Inc.'s Growth Numbers
ThermoGenesis Holdings, Inc.'s earnings per share (EPS) grew 38% per year over the last three years. It saw its revenue drop 32% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has ThermoGenesis Holdings, Inc. Been A Good Investment?
Since shareholders would have lost about 92% over three years, some ThermoGenesis Holdings, Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
ThermoGenesis Holdings pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we touched on above, ThermoGenesis Holdings, Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. But on the bright side, EPS growth is positive over the same period. Overall, we wouldn't say Chris is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 4 warning signs for ThermoGenesis Holdings you should be aware of, and 2 of them don't sit too well with us.
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.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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