Is Marrone Bio Innovations Inc’s (NASDAQ:MBII) CEO Salary Justified?

Pam Marrone became the CEO of Marrone Bio Innovations Inc (NASDAQ:MBII) in 2006. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Marrone Bio Innovations

How Does Pam Marrone’s Compensation Compare With Similar Sized Companies?

Our data indicates that Marrone Bio Innovations Inc is worth US$160m, and total annual CEO compensation is US$344k. That’s actually a decrease on the year before. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO compensation was US$930k.

Most shareholders would consider it a positive that Pam Marrone takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

The graphic below shows how CEO compensation at Marrone Bio Innovations has changed from year to year.

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Is Marrone Bio Innovations Inc Growing?

Marrone Bio Innovations Inc has increased its earnings per share (EPS) by an average of 44% a year, over the last three years In the last year, its revenue is up 7.3%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Marrone Bio Innovations Inc Been A Good Investment?

Since shareholders would have lost about 37% over three years, some Marrone Bio Innovations Inc shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

Marrone Bio Innovations Inc is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. Unfortunately, some shareholders may be disappointed with their returns, given the company’s performance over the last three years. We’re not critical of the remuneration Pam Marrone receives, but it would be good to see improved returns to shareholders before the remuneration grows too much.

This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Marrone Bio Innovations Inc (free visualization of insider trades).

Or you might prefer examine intently this intuitive graph showing past earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at [email protected].