Yahoo Finance What Did Ardelyx, Inc.'s (NASDAQ:ARDX) CEO Take Home Last Year?
Mike Raab has been the CEO of Ardelyx, Inc. (NASDAQ:ARDX) since 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Ardelyx
How Does Mike Raab's Compensation Compare With Similar Sized Companies?
Our data indicates that Ardelyx, Inc. is worth US$602m, and total annual CEO compensation was reported as US$4.2m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$575k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$3.3m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Ardelyx stands. On an industry level, roughly 23% of total compensation represents salary and 77% is other remuneration. Non-salary compensation represents a greater slice of the remuneration pie for Ardelyx, in sharp contrast to the overall sector.
That means Mike Raab receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. The graphic below shows how CEO compensation at Ardelyx has changed from year to year.
Is Ardelyx, Inc. Growing?
Over the last three years Ardelyx, Inc. has seen earnings per share (EPS) move in a positive direction by an average of 22% per year (using a line of best fit). Its revenue is up 103% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Ardelyx, Inc. Been A Good Investment?
With a three year total loss of 51%, Ardelyx, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Remuneration for Mike Raab is close enough to the median pay for a CEO of a similar sized company .
We think that the EPS growth is very pleasing, but it's disappointing to see negative shareholder returns over three years. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. On another note, we've spotted 3 warning signs for Ardelyx that investors should look into moving forward.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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