We Think Corbus Pharmaceuticals Holdings, Inc.'s (NASDAQ:CRBP) CEO Compensation Package Needs To Be Put Under A Microscope
Corbus Pharmaceuticals Holdings, Inc. (NASDAQ:CRBP) has not performed well recently and CEO Yuval Cohen will probably need to up their game. At the upcoming AGM on 17 June 2021, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.
See our latest analysis for Corbus Pharmaceuticals Holdings
Comparing Corbus Pharmaceuticals Holdings, Inc.'s CEO Compensation With the industry
Our data indicates that Corbus Pharmaceuticals Holdings, Inc. has a market capitalization of US$273m, and total annual CEO compensation was reported as US$2.9m for the year to December 2020. We note that's a decrease of 28% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$559k.
In comparison with other companies in the industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$1.7m. This suggests that Yuval Cohen is paid more than the median for the industry. Moreover, Yuval Cohen also holds US$164k worth of Corbus Pharmaceuticals Holdings stock directly under their own name.
Component | 2020 | 2019 | Proportion (2020) |
Salary | US$559k | US$559k | 19% |
Other | US$2.3m | US$3.4m | 81% |
Total Compensation | US$2.9m | US$4.0m | 100% |
On an industry level, around 20% of total compensation represents salary and 80% is other remuneration. There isn't a significant difference between Corbus Pharmaceuticals Holdings and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Corbus Pharmaceuticals Holdings, Inc.'s Growth
Over the last three years, Corbus Pharmaceuticals Holdings, Inc. has shrunk its earnings per share by 22% per year. In the last year, its revenue is down 92%.
The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Corbus Pharmaceuticals Holdings, Inc. Been A Good Investment?
Few Corbus Pharmaceuticals Holdings, Inc. shareholders would feel satisfied with the return of -64% over three years. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 4 warning signs for Corbus Pharmaceuticals Holdings (1 is significant!) that you should be aware of before investing here.
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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