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Is Aeglea BioTherapeutics, Inc.'s (NASDAQ:AGLE) CEO Salary Justified?

Anthony Quinn became the CEO of Aeglea BioTherapeutics, Inc. (NASDAQ:AGLE) in 2017. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.

See our latest analysis for Aeglea BioTherapeutics

How Does Anthony Quinn's Compensation Compare With Similar Sized Companies?

According to our data, Aeglea BioTherapeutics, Inc. has a market capitalization of US$228m, and paid its CEO total annual compensation worth US$3.8m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$507k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. 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.

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Thus we can conclude that Anthony Quinn receives more in total compensation than the median of a group of companies in the same market, and of similar size to Aeglea BioTherapeutics, Inc.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Aeglea BioTherapeutics, below.

NasdaqGM:AGLE CEO Compensation, January 8th 2020
NasdaqGM:AGLE CEO Compensation, January 8th 2020

Is Aeglea BioTherapeutics, Inc. Growing?

Earnings per share at Aeglea BioTherapeutics, Inc. are much the same as they were three years ago, albeit with a positive trend. It has seen most of its revenue evaporate over the past year.

I would argue that the lack of revenue growth in the last year is less than ideal, but the modest improvement in EPS is good. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Shareholders might be interested in this free visualization of analyst forecasts.

Has Aeglea BioTherapeutics, Inc. Been A Good Investment?

Boasting a total shareholder return of 48% over three years, Aeglea BioTherapeutics, Inc. has done well by shareholders. 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.

In Summary...

We compared the total CEO remuneration paid by Aeglea BioTherapeutics, Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. So, considering these tasty returns, the CEO compensation may be quite appropriate. Shareholders may want to check for free if Aeglea BioTherapeutics insiders are buying or selling shares.

If you want to buy a stock that is better than Aeglea BioTherapeutics, 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.

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. Thank you for reading.