Does Champions Oncology, Inc.'s (NASDAQ:CSBR) CEO Pay Reflect Performance?
In 2017 Ronnie Morris was appointed CEO of Champions Oncology, Inc. (NASDAQ:CSBR). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Champions Oncology
How Does Ronnie Morris's Compensation Compare With Similar Sized Companies?
According to our data, Champions Oncology, Inc. has a market capitalization of US$84m, and paid its CEO total annual compensation worth US$146k over the year to April 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$146k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$521k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Champions Oncology, below.
Is Champions Oncology, Inc. Growing?
On average over the last three years, Champions Oncology, Inc. has grown earnings per share (EPS) by 98% each year (using a line of best fit). In the last year, its revenue is up 24%.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Champions Oncology, Inc. Been A Good Investment?
I think that the total shareholder return of 115%, over three years, would leave most Champions Oncology, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
It appears that Champions Oncology, Inc. remunerates its CEO below most similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Ronnie Morris deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. Shareholders may want to check for free if Champions Oncology 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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