NASDAQ:CGEN) since 2010. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Compugen.” data-reactid=”28″>This article will reflect on the compensation paid to Anat Cohen-Dayag who has served as CEO of Compugen Ltd. (NASDAQ:CGEN) since 2010. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Compugen.
View our latest analysis for Compugen ” data-reactid=”29″> View our latest analysis for Compugen
Comparing Compugen Ltd.’s CEO Compensation With the industry
At the time of writing, our data shows that Compugen Ltd. has a market capitalization of US$1.3b, and reported total annual CEO compensation of US$941k for the year to December 2019. That’s a notable increase of 10% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$395k.
For comparison, other companies in the same industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$3.4m. This suggests that Anat Cohen-Dayag is paid below the industry median. Furthermore, Anat Cohen-Dayag directly owns US$1.5m worth of shares in the company, implying that they are deeply invested in the company’s success.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | US$395k | US$391k | 42% |
| Other | US$546k | US$463k | 58% |
| Total Compensation | US$941k | US$854k | 100% |
Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. Compugen is paying a higher share of its remuneration through a salary in comparison to the overall industry. If non-salary compensation dominates total pay, it’s an indicator that the executive’s salary is tied to company performance.
Compugen Ltd.’s Growth
Compugen Ltd. has seen its earnings per share (EPS) increase by 21% a year over the past three years. In the last year, its revenue has collapsed effectively to zero.
this free visual report on analyst forecasts for the company’s future earnings..” data-reactid=”54″>Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company’s future earnings..
Has Compugen Ltd. Been A Good Investment?
We think that the total shareholder return of 359%, over three years, would leave most Compugen Ltd. shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude…
As we noted earlier, Compugen pays its CEO lower than the norm for similar-sized companies belonging to the same industry. When taking into account the company’s strong EPS growth over the past three years, it appears CEO compensation is modest. Plus, we can’t ignore the impressive shareholder returns, and won’t be surprised if some shareholders were to reward such excellent all-around performance with a raise.
4 warning signs for Compugen (2 are concerning!) that you should be aware of before investing here.” data-reactid=”59″>CEO compensation is an important area to keep your eyes on, but we’ve also need to pay attention to other attributes of the company. We identified 4 warning signs for Compugen (2 are concerning!) that you should be aware of before investing here.
list of high return, low debt companies is a great place to look.” data-reactid=”60″>Switching gears from Compugen, if you’re hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”61″>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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