Yahoo Finance Cryoport, Inc.'s (NASDAQ:CYRX) CEO Compensation Looks Acceptable To Us And Here's Why
Key Insights
Cryoport to hold its Annual General Meeting on 17th of May
Salary of US$865.6k is part of CEO Jerry Shelton's total remuneration
The overall pay is 56% below the industry average
Over the past three years, Cryoport's EPS grew by 22% and over the past three years, the total loss to shareholders 73%
The performance at Cryoport, Inc. (NASDAQ:CYRX) has been rather lacklustre of late and shareholders may be wondering what CEO Jerry Shelton is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 17th of May. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We think CEO compensation looks appropriate given the data we have put together.
Check out our latest analysis for Cryoport
Comparing Cryoport, Inc.'s CEO Compensation With The Industry
According to our data, Cryoport, Inc. has a market capitalization of US$663m, and paid its CEO total annual compensation worth US$2.2m over the year to December 2023. Notably, that's a decrease of 10% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$866k.
On examining similar-sized companies in the American Life Sciences industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$5.1m. That is to say, Jerry Shelton is paid under the industry median. Moreover, Jerry Shelton also holds US$9.2m worth of Cryoport stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$866k | US$792k | 39% |
Other | US$1.4m | US$1.7m | 61% |
Total Compensation | US$2.2m | US$2.5m | 100% |
On an industry level, roughly 20% of total compensation represents salary and 80% is other remuneration. According to our research, Cryoport has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Cryoport, Inc.'s Growth
Cryoport, Inc.'s earnings per share (EPS) grew 22% per year over the last three years. In the last year, its revenue is down 9.2%.
Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Cryoport, Inc. Been A Good Investment?
The return of -73% over three years would not have pleased Cryoport, Inc. shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
The fact that shareholders are sitting on a loss is certainly disheartening. The share price trend has diverged with the robust growth in EPS however, suggesting there may be other factors that could be driving the price performance. A key question may be why the fundamentals have not yet been reflected into the share price. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for Cryoport that investors should think about before committing capital to this stock.
Switching gears from Cryoport, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
