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Corbus Pharmaceuticals Holdings, Inc. (NASDAQ:CRBP) has not performed well recently and CEO Yuval Cohen will probably need to up their game. At the upcoming AGM on 17 June 2021, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.
See our latest analysis for Corbus Pharmaceuticals Holdings
Comparing Corbus Pharmaceuticals Holdings, Inc.'s CEO Compensation With the industry
Our data indicates that Corbus Pharmaceuticals Holdings, Inc. has a market capitalization of US$273m, and total annual CEO compensation was reported as US$2.9m for the year to December 2020. We note that's a decrease of 28% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$559k.
In comparison with other companies in the industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$1.7m. This suggests that Yuval Cohen is paid more than the median for the industry. Moreover, Yuval Cohen also holds US$164k worth of Corbus Pharmaceuticals Holdings stock directly under their own name.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$559k | US$559k | 19% |
| Other | US$2.3m | US$3.4m | 81% |
| Total Compensation | US$2.9m | US$4.0m | 100% |
On an industry level, around 20% of total compensation represents salary and 80% is other remuneration. There isn't a significant difference between Corbus Pharmaceuticals Holdings and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Corbus Pharmaceuticals Holdings, Inc.'s Growth
Over the last three years, Corbus Pharmaceuticals Holdings, Inc. has shrunk its earnings per share by 22% per year. In the last year, its revenue is down 92%.
The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Corbus Pharmaceuticals Holdings, Inc. Been A Good Investment?
Few Corbus Pharmaceuticals Holdings, Inc. shareholders would feel satisfied with the return of -64% over three years. This suggests it would be unwise for the company to pay the CEO too generously.