In This Article:
In the past three years, the share price of Coherus BioSciences, Inc. (NASDAQ:CHRS) has struggled to generate growth for its shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 21 May 2021 could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
Check out our latest analysis for Coherus BioSciences
Comparing Coherus BioSciences, Inc.'s CEO Compensation With the industry
Our data indicates that Coherus BioSciences, Inc. has a market capitalization of US$1.1b, and total annual CEO compensation was reported as US$7.3m for the year to December 2020. That's a notable increase of 36% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$857k.
For comparison, other companies in the same industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$3.4m. This suggests that Denny Lanfear is paid more than the median for the industry. Moreover, Denny Lanfear also holds US$9.7m worth of Coherus BioSciences stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$857k | US$751k | 12% |
| Other | US$6.4m | US$4.6m | 88% |
| Total Compensation | US$7.3m | US$5.4m | 100% |
On an industry level, roughly 20% of total compensation represents salary and 80% is other remuneration. In Coherus BioSciences' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Coherus BioSciences, Inc.'s Growth
Coherus BioSciences, Inc.'s earnings per share (EPS) grew 92% per year over the last three years. Its revenue is up 1.7% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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.