Yahoo Finance How Does REGENXBIO's (NASDAQ:RGNX) CEO Salary Compare to Peers?
Ken Mills became the CEO of REGENXBIO Inc. (NASDAQ:RGNX) in 2009, 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 assess whether REGENXBIO pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for REGENXBIO
Comparing REGENXBIO Inc.'s CEO Compensation With the industry
According to our data, REGENXBIO Inc. has a market capitalization of US$1.1b, and paid its CEO total annual compensation worth US$6.1m over the year to December 2019. That's a notable increase of 24% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$596k.
For comparison, other companies in the same industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$2.8m. Hence, we can conclude that Ken Mills is remunerated higher than the industry median. What's more, Ken Mills holds US$7.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$596k | US$546k | 10% |
Other | US$5.6m | US$4.4m | 90% |
Total Compensation | US$6.1m | US$4.9m | 100% |
Speaking on an industry level, nearly 23% of total compensation represents salary, while the remainder of 77% is other remuneration. In REGENXBIO's case, non-salary compensation represents a greater slice of total remuneration, in comparison 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.
REGENXBIO Inc.'s Growth
REGENXBIO Inc. has reduced its earnings per share by 26% a year over the last three years. In the last year, its revenue is up 10%.
Few shareholders would be pleased to read that EPS have declined. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that EPS has gone backwards over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has REGENXBIO Inc. Been A Good Investment?
Most shareholders would probably be pleased with REGENXBIO Inc. for providing a total return of 40% 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, REGENXBIO pays its CEO higher than the norm for similar-sized companies belonging to the same industry. The company isn't growing EPS, but shareholder returns have been impressive over the last three years. So while we don't think, Ken is paid too much, shareholders may want to see some positive EPS growth before pay rises are given out.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for REGENXBIO (1 is potentially serious!) that you should be aware of before investing here.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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