Yahoo Finance Is Ocular Therapeutix, Inc. (NASDAQ:OCUL) Overpaying Its CEO?
Antony Mattessich has been the CEO of Ocular Therapeutix, Inc. (NASDAQ:OCUL) since 2017. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Ocular Therapeutix
How Does Antony Mattessich's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Ocular Therapeutix, Inc. has a market cap of US$213m, and reported total annual CEO compensation of US$2.6m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$565k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.1m.
It would therefore appear that Ocular Therapeutix, Inc. pays Antony Mattessich more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Ocular Therapeutix has changed over time.
Is Ocular Therapeutix, Inc. Growing?
Ocular Therapeutix, Inc. has increased its earnings per share (EPS) by an average of 5.5% a year, over the last three years (using a line of best fit). Its revenue is up 25% over last year.
It's hard to interpret the strong revenue growth as anything other than a positive. With that in mind, the modestly improving EPS seems positive. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Shareholders might be interested in this free visualization of analyst forecasts.
Has Ocular Therapeutix, Inc. Been A Good Investment?
Since shareholders would have lost about 45% over three years, some Ocular Therapeutix, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared the total CEO remuneration paid by Ocular Therapeutix, Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling Ocular Therapeutix shares (free trial).
If you want to buy a stock that is better than Ocular Therapeutix, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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