Yahoo Finance It Looks Like REGENXBIO Inc.'s (NASDAQ:RGNX) CEO May Expect Their Salary To Be Put Under The Microscope
Key Insights
REGENXBIO will host its Annual General Meeting on 31st of May
Total pay for CEO Ken Mills includes US$676.8k salary
The overall pay is 37% above the industry average
REGENXBIO's EPS declined by 42% over the past three years while total shareholder loss over the past three years was 58%
REGENXBIO Inc. (NASDAQ:RGNX) has not performed well recently and CEO Ken Mills will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 31st of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.
View our latest analysis for REGENXBIO
How Does Total Compensation For Ken Mills Compare With Other Companies In The Industry?
At the time of writing, our data shows that REGENXBIO Inc. has a market capitalization of US$737m, and reported total annual CEO compensation of US$5.9m for the year to December 2023. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$677k.
On examining similar-sized companies in the American Biotechs industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$4.3m. Accordingly, our analysis reveals that REGENXBIO Inc. pays Ken Mills north of the industry median. What's more, Ken Mills holds US$4.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$677k | US$651k | 11% |
Other | US$5.2m | US$5.1m | 89% |
Total Compensation | US$5.9m | US$5.8m | 100% |
On an industry level, roughly 23% of total compensation represents salary and 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 total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at REGENXBIO Inc.'s Growth Numbers
Over the last three years, REGENXBIO Inc. has shrunk its earnings per share by 42% per year. In the last year, its revenue is down 21%.
The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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?
With a total shareholder return of -58% over three years, REGENXBIO Inc. shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for REGENXBIO that investors should look into moving forward.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
