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Ivan Bergstein became the CEO of Stemline Therapeutics, Inc. ( NASDAQ:STML ) in 2003. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Ivan Bergstein’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Stemline Therapeutics, Inc. has a market cap of US$451m, and is paying total annual CEO compensation of US$3.4m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$554k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO compensation of that group was US$1.5m.
It would therefore appear that Stemline Therapeutics, Inc. pays Ivan Bergstein 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 get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Stemline Therapeutics has changed from year to year.
Is Stemline Therapeutics, Inc. Growing?
On average over the last three years, Stemline Therapeutics, Inc. has shrunk earnings per share by 14% each year (measured with a line of best fit). Its revenue is down -58% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Stemline Therapeutics, Inc. Been A Good Investment?
Boasting a total shareholder return of 170% over three years, Stemline Therapeutics, Inc. has done well by shareholders. 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.
We examined the amount Stemline Therapeutics, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
However, we can’t argue with the strong returns to shareholders, over the same time period. Given this situation we doubt shareholders are particularly concerned about the CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Stemline Therapeutics.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.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. On rare occasion, data errors may occur. Thank you for reading.