Yahoo Finance Here's Why Creative Medical Technology Holdings, Inc.'s (NASDAQ:CELZ) CEO Compensation Is The Least Of Shareholders Concerns
Key Insights
Creative Medical Technology Holdings' Annual General Meeting to take place on 19th of July
Salary of US$330.0k is part of CEO Tim Warbington's total remuneration
The total compensation is 58% less than the average for the industry
Creative Medical Technology Holdings' EPS grew by 73% over the past three years while total shareholder loss over the past three years was 98%
Performance at Creative Medical Technology Holdings, Inc. (NASDAQ:CELZ) has been rather uninspiring recently and shareholders may be wondering how CEO Tim Warbington plans to fix this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 19th of July. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.
See our latest analysis for Creative Medical Technology Holdings
How Does Total Compensation For Tim Warbington Compare With Other Companies In The Industry?
At the time of writing, our data shows that Creative Medical Technology Holdings, Inc. has a market capitalization of US$4.7m, and reported total annual CEO compensation of US$523k for the year to December 2023. We note that's an increase of 11% above last year. Notably, the salary which is US$330.0k, represents most of the total compensation being paid.
For comparison, other companies in the American Biotechs industry with market capitalizations below US$200m, reported a median total CEO compensation of US$1.2m. That is to say, Tim Warbington is paid under the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$330k | US$330k | 63% |
Other | US$193k | US$139k | 37% |
Total Compensation | US$523k | US$469k | 100% |
Speaking on an industry level, nearly 23% of total compensation represents salary, while the remainder of 77% is other remuneration. It's interesting to note that Creative Medical Technology Holdings pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Creative Medical Technology Holdings, Inc.'s Growth Numbers
Creative Medical Technology Holdings, Inc.'s earnings per share (EPS) grew 73% per year over the last three years. Its revenue is down 88% over the previous 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. 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 Creative Medical Technology Holdings, Inc. Been A Good Investment?
With a total shareholder return of -98% over three years, Creative Medical Technology Holdings, Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
The fact that shareholders have earned a negative share price return is certainly disconcerting. This diverges with the robust growth in EPS, suggesting that there is a large discrepancy between share price and fundamentals. A key focus for the board and management will be how to align the share price with fundamentals. 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 2 warning signs for Creative Medical Technology Holdings that you should be aware of before investing.
Switching gears from Creative Medical Technology Holdings, 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.
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