Yahoo Finance How Should Investors Feel About Catalyst Biosciences, Inc.'s (NASDAQ:CBIO) CEO Pay?
Nassim Usman became the CEO of Catalyst Biosciences, Inc. (NASDAQ:CBIO) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Catalyst Biosciences
How Does Nassim Usman's Compensation Compare With Similar Sized Companies?
Our data indicates that Catalyst Biosciences, Inc. is worth US$88m, and total annual CEO compensation is US$2.4m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$481k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$479k.
Thus we can conclude that Nassim Usman receives more in total compensation than the median of a group of companies in the same market, and of similar size to Catalyst Biosciences, Inc.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Catalyst Biosciences has changed over time.
Is Catalyst Biosciences, Inc. Growing?
Catalyst Biosciences, Inc. has increased its earnings per share (EPS) by an average of 79% a year, over the last three years (using a line of best fit). It has seen most of its revenue evaporate over the past year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. Shareholders might be interested in this free visualization of analyst forecasts.
Has Catalyst Biosciences, Inc. Been A Good Investment?
Given the total loss of 63% over three years, many shareholders in Catalyst Biosciences, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared total CEO remuneration at Catalyst Biosciences, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if Catalyst Biosciences insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.
