James Howard-Tripp has been the CEO of StageZero Life Sciences Ltd. (TSE:SZLS) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 James Howard-Tripp's Compensation Compare With Similar Sized Companies?
Our data indicates that StageZero Life Sciences Ltd. is worth CA$16m, and total annual CEO compensation was reported as US$405k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at . We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$156k.
As you can see, James Howard-Tripp is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean StageZero Life Sciences Ltd. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at StageZero Life Sciences, below.
Is StageZero Life Sciences Ltd. Growing?
Over the last three years StageZero Life Sciences Ltd. has grown its earnings per share (EPS) by an average of 41% per year (using a line of best fit). It saw its revenue drop 6.1% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has StageZero Life Sciences Ltd. Been A Good Investment?
Since shareholders would have lost about 86% over three years, some StageZero Life Sciences Ltd. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We examined the amount StageZero Life Sciences Ltd. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at StageZero Life Sciences.
If you want to buy a stock that is better than StageZero Life Sciences, this free list of high return, low debt companies is a great place to look.
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