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Olly Peoples became the CEO of Yield10 Bioscience, Inc. (NASDAQ:YTEN) in 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 Olly Peoples's Compensation Compare With Similar Sized Companies?
According to our data, Yield10 Bioscience, Inc. has a market capitalization of US$8.5m, and paid its CEO total annual compensation worth US$738k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$275k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$496k.
As you can see, Olly Peoples is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Yield10 Bioscience, Inc. 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 Yield10 Bioscience, below.
Is Yield10 Bioscience, Inc. Growing?
Yield10 Bioscience, Inc. has increased its earnings per share (EPS) by an average of 41% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 2.8%.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Yield10 Bioscience, Inc. Been A Good Investment?
Given the total loss of 86% over three years, many shareholders in Yield10 Bioscience, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Yield10 Bioscience, Inc. with the amount paid at companies with a similar market capitalization. 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. However, the returns to investors are far less impressive, over the same period. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Shareholders may want to check for free if Yield10 Bioscience insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.