Our Take On VBI Vaccines' (NASDAQ:VBIV) CEO Salary

Jeff Baxter became the CEO of VBI Vaccines Inc. (NASDAQ:VBIV) in 2016, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for VBI Vaccines.

See our latest analysis for VBI Vaccines

Comparing VBI Vaccines Inc.'s CEO Compensation With the industry

Our data indicates that VBI Vaccines Inc. has a market capitalization of US$536m, and total annual CEO compensation was reported as US$1.4m for the year to December 2019. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at US$500k.

On examining similar-sized companies in the industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$2.2m. In other words, VBI Vaccines pays its CEO lower than the industry median. Furthermore, Jeff Baxter directly owns US$1.4m worth of shares in the company.

On an industry level, around 23% of total compensation represents salary and 77% is other remuneration. VBI Vaccines pays out 36% of remuneration in the form of a salary, significantly higher than the industry average. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

VBI Vaccines Inc.'s Growth

VBI Vaccines Inc. has seen its earnings per share (EPS) increase by 36% a year over the past three years. It saw its revenue drop 66% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has VBI Vaccines Inc. Been A Good Investment?

Given the total shareholder loss of 45% over three years, many shareholders in VBI Vaccines Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we noted earlier, VBI Vaccines pays its CEO lower than the norm for similar-sized companies belonging to the same industry. However we must not forget that the EPS growth has been very strong over three years. Although we would've liked to see positive investor returns, it would be bold of us to criticize CEO compensation when EPS are up. But we believe shareholders would want to see healthier returns before the CEO gets a raise.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 4 warning signs for VBI Vaccines that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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