How Much Does ImmuCell's (NASDAQ:ICCC) CEO Make?

This article will reflect on the compensation paid to Michael Brigham who has served as CEO of ImmuCell Corporation (NASDAQ:ICCC) since 2000. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for ImmuCell.

View our latest analysis for ImmuCell

How Does Total Compensation For Michael Brigham Compare With Other Companies In The Industry?

Our data indicates that ImmuCell Corporation has a market capitalization of US$41m, and total annual CEO compensation was reported as US$344k for the year to December 2019. That's a notable decrease of 19% on last year. In particular, the salary of US$315.5k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$1.1m. That is to say, Michael Brigham is paid under the industry median. Furthermore, Michael Brigham directly owns US$1.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 23% of total compensation out of all the companies we analyzed, while other remuneration made up 77% of the pie. ImmuCell pays out 92% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at ImmuCell Corporation's Growth Numbers

Over the last three years, ImmuCell Corporation has shrunk its earnings per share by 41% per year. In the last year, its revenue is up 18%.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one 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 ImmuCell Corporation Been A Good Investment?

With a three year total loss of 26% for the shareholders, ImmuCell Corporation would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As previously discussed, Michael is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. But shareholder returns and EPS growth over the past three years are negative, which is cause for concern. In contrast, revenues have increased more recently. Though we believe Michael is modestly compensated, shareholders might want to see positive shareholder returns before agreeing compensation should be raised.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for ImmuCell that investors should look into moving forward.

Important note: ImmuCell is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.