How Much is CEL-SCI's (NYSEMKT:CVM) CEO Getting Paid?

This article will reflect on the compensation paid to Geert Kersten who has served as CEO of CEL-SCI Corporation (NYSEMKT:CVM) since 1995. This analysis will also assess whether CEL-SCI pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for CEL-SCI

Comparing CEL-SCI Corporation's CEO Compensation With the industry

According to our data, CEL-SCI Corporation has a market capitalization of US$547m, and paid its CEO total annual compensation worth US$3.3m over the year to September 2020. That's a notable decrease of 26% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$756k.

For comparison, other companies in the same industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$1.8m. Accordingly, our analysis reveals that CEL-SCI Corporation pays Geert Kersten north of the industry median. What's more, Geert Kersten holds US$15m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 26% of total compensation represents salary and 74% is other remuneration. CEL-SCI pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at CEL-SCI Corporation's Growth Numbers

CEL-SCI Corporation's earnings per share (EPS) grew 38% per year over the last three years. It achieved revenue growth of 21% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has CEL-SCI Corporation Been A Good Investment?

Most shareholders would probably be pleased with CEL-SCI Corporation for providing a total return of 591% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

As we noted earlier, CEL-SCI pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But EPS growth and shareholder returns have been top-notch for the past three years. As a result of the excellent all-round performance of the company, we believe CEO compensation is fair. Given the strong history of shareholder returns, the shareholders are probably very happy with Geert's performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 4 warning signs for CEL-SCI you should be aware of, and 2 of them are concerning.

Switching gears from CEL-SCI, 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.

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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