Derek Small became the CEO of Assembly Biosciences Inc (NASDAQ:ASMB) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. 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 Derek Small’s Compensation Compare With Similar Sized Companies?
According to our data, Assembly Biosciences Inc has a market capitalization of US$673m, and pays its CEO total annual compensation worth US$1.4m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$471k. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO compensation of that group was US$2.2m.
Most shareholders would consider it a positive that Derek Small takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Assembly Biosciences has changed over time.
Is Assembly Biosciences Inc Growing?
Assembly Biosciences Inc has reduced its earnings per share by an average of 16% a year, over the last three years. It achieved revenue growth of 152% over the last year.
The reduction in earnings per share, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. It’s hard to reach a conclusion about business performance right now. This may be one to watch.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Assembly Biosciences Inc Been A Good Investment?
Boasting a total shareholder return of 197% over three years, Assembly Biosciences Inc has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
It looks like Assembly Biosciences Inc pays its CEO less than similar sized companies.
Derek Small is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. Although we could see higher growth, we’d argue the remuneration is modest, based on these observations. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Assembly Biosciences.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.