This article will reflect on the compensation paid to Guy Cook who has served as CEO of Lattice Biologics Ltd. (CVE:LBL) since 2013. This analysis will also assess whether Lattice Biologics pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Guy Cook Compare With Other Companies In The Industry?
According to our data, Lattice Biologics Ltd. has a market capitalization of CA$4.7m, and paid its CEO total annual compensation worth US$360k over the year to September 2019. That's a slight decrease of 4.6% on the prior year. It is worth noting that the CEO compensation consists entirely of the salary, worth US$360k.
In comparison with other companies in the industry with market capitalizations under CA$268m, the reported median total CEO compensation was US$256k. This suggests that Guy Cook is paid more than the median for the industry. What's more, Guy Cook holds CA$2.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Talking in terms of the industry, salary represented approximately 56% of total compensation out of all the companies we analyzed, while other remuneration made up 44% of the pie. Speaking on a company level, Lattice Biologics prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Lattice Biologics Ltd.'s Growth Numbers
Over the past three years, Lattice Biologics Ltd. has seen its earnings per share (EPS) grow by 54% per year. In the last year, its revenue is up 26%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Lattice Biologics Ltd. Been A Good Investment?
With a three year total loss of 58% for the shareholders, Lattice Biologics Ltd. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
Lattice Biologics pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we touched on above, Lattice Biologics Ltd. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, we must not forget that the EPS growth has been very strong, but it's disappointing to see negative shareholder returns over the same period. Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which is a bit concerning) in Lattice Biologics we think you should know about.
Switching gears from Lattice Biologics, 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.
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. 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.
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