Anat Cohen-Dayag became the CEO of Compugen Ltd. (NASDAQ:CGEN) in 2010. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Anat Cohen-Dayag's Compensation Compare With Similar Sized Companies?
According to our data, Compugen Ltd. has a market capitalization of US$546m, and paid its CEO total annual compensation worth US$854k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$391k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.7m.
A first glance this seems like a real positive for shareholders, since Anat Cohen-Dayag is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Compugen has changed from year to year.
Is Compugen Ltd. Growing?
Compugen Ltd. has increased its earnings per share (EPS) by an average of 9.8% a year, over the last three years (using a line of best fit). It has seen most of its revenue evaporate over the past year.
I generally like to see a little revenue growth, but the improvement in EPS is good. 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 Compugen Ltd. Been A Good Investment?
Most shareholders would probably be pleased with Compugen Ltd. for providing a total return of 90% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
It appears that Compugen Ltd. remunerates its CEO below most similar sized companies.
Anat Cohen-Dayag receives relatively low remuneration compared to similar sized companies. And the returns to shareholders were great, over the last few years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. Shareholders may want to check for free if Compugen insiders are buying or selling shares.
Important note: Compugen may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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. Thank you for reading.