In 2015 Sunil Bhonsle was appointed CEO of Titan Pharmaceuticals, Inc. (NASDAQ:TTNP). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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 Sunil Bhonsle's Compensation Compare With Similar Sized Companies?
Our data indicates that Titan Pharmaceuticals, Inc. is worth US$9.3m, and total annual CEO compensation was reported as US$520k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$395k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$529k.
So Sunil Bhonsle is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Titan Pharmaceuticals has changed from year to year.
Is Titan Pharmaceuticals, Inc. Growing?
On average over the last three years, Titan Pharmaceuticals, Inc. has shrunk earnings per share by 24% each year (measured with a line of best fit). Its revenue is down 33% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Titan Pharmaceuticals, Inc. Been A Good Investment?
With a three year total loss of 99%, Titan Pharmaceuticals, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Sunil Bhonsle is paid around what is normal the leaders of comparable size companies.
The company isn't growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don't think the CEO is underpaid! Whatever your view on compensation, you might want to check if insiders are buying or selling Titan Pharmaceuticals shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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