How Much Does Cryoport's (NASDAQ:CYRX) CEO Make?

Jerrell Shelton has been the CEO of Cryoport, Inc. (NASDAQ:CYRX) since 2012, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Cryoport pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See 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$1.2b, and paid its CEO total annual compensation worth US$4.2m over the year to December 2019. We note that's an increase of 51% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$600k.

On examining similar-sized companies in the industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was US$4.2m. So it looks like Cryoport compensates Jerrell Shelton in line with the median for the industry. Moreover, Jerrell Shelton also holds US$13m worth of Cryoport stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2019

2018

Proportion (2019)

Salary

US$600k

US$581k

14%

Other

US$3.6m

US$2.2m

86%

Total Compensation

US$4.2m

US$2.8m

100%

On an industry level, around 21% of total compensation represents salary and 79% is other remuneration. Cryoport pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
ceo-compensation

Cryoport, Inc.'s Growth

Cryoport, Inc. has reduced its earnings per share by 12% a year over the last three years. It achieved revenue growth of 45% over the last year.

The decrease in earnings could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Cryoport, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Cryoport, Inc. for providing a total return of 327% over three years. 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...

As previously discussed, Jerrell is compensated close to the median for companies of its size, and which belong to the same industry. Investors will be happy that Cryoport has produced strong shareholder returns for the past three years. Meanwhile, revenues have been increasing recently On a sour note, EPS growth has been negative. However, considering overall positive performance, we think Jerrell, shareholders might not be too worried about the CEO's compensation.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Cryoport that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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