In 2016 Khoso Baluch was appointed CEO of CorMedix, Inc. (NYSEMKT:CRMD). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Khoso Baluch's Compensation Compare With Similar Sized Companies?
According to our data, CorMedix, Inc. has a market capitalization of US$200m, and pays its CEO total annual compensation worth US$587k. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$375k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.2m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less 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 CorMedix has changed over time.
Is CorMedix, Inc. Growing?
CorMedix, Inc. has increased its earnings per share (EPS) by an average of 28% a year, over the last three years (using a line of best fit). Its revenue is up 224% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has CorMedix, Inc. Been A Good Investment?
Since shareholders would have lost about 44% over three years, some CorMedix, Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
It appears that CorMedix, Inc. remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. Few would deny that the total shareholder return over the last three years could have been a lot better. So while we don't think, Khoso Baluch is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out.
In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at CorMedix.
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.
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