Stephen From has been the CEO of EyeGate Pharmaceuticals, Inc. (NASDAQ:EYEG) since 2005, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Stephen From Compare With Other Companies In The Industry?
Our data indicates that EyeGate Pharmaceuticals, Inc. has a market capitalization of US$17m, and total annual CEO compensation was reported as US$601k for the year to December 2019. Notably, that's a decrease of 40% over the year before. We note that the salary portion, which stands at US$400.0k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$915k. This suggests that Stephen From is paid below the industry median. What's more, Stephen From holds US$291k worth of shares in the company in their own name.
Speaking on an industry level, nearly 24% of total compensation represents salary, while the remainder of 76% is other remuneration. It's interesting to note that EyeGate Pharmaceuticals pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
EyeGate Pharmaceuticals, Inc.'s Growth
EyeGate Pharmaceuticals, Inc. has seen its earnings per share (EPS) increase by 79% a year over the past three years. In the last year, the company lost virtually all of its revenue.
Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has EyeGate Pharmaceuticals, Inc. Been A Good Investment?
With a three year total loss of 79% for the shareholders, EyeGate Pharmaceuticals, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
As previously discussed, Stephen is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Importantly though, the company has impressed with its EPS growth over three years. Considering EPS are on the up, we would say Stephen is compensated fairly. Shareholders, though, would ideally like to see shareholder returns head north before they agree to any raise.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 6 warning signs for EyeGate Pharmaceuticals (of which 3 are potentially serious!) that you should know about in order to have a holistic understanding of the stock.
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.
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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