Yahoo Finance Is REGENXBIO Inc.'s (NASDAQ:RGNX) CEO Overpaid Relative To Its Peers?
Ken Mills has been the CEO of REGENXBIO Inc. (NASDAQ:RGNX) since 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for REGENXBIO
How Does Ken Mills's Compensation Compare With Similar Sized Companies?
According to our data, REGENXBIO Inc. has a market capitalization of US$1.5b, and pays its CEO total annual compensation worth US$4.9m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$546k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$4.0m.
That means Ken Mills receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at REGENXBIO, below.
Is REGENXBIO Inc. Growing?
REGENXBIO Inc. has increased its earnings per share (EPS) by an average of 69% a year, over the last three years (using a line of best fit). Its revenue is down -39% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Shareholders might be interested in this free visualization of analyst forecasts.
Has REGENXBIO Inc. Been A Good Investment?
I think that the total shareholder return of 284%, over three years, would leave most REGENXBIO Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Ken Mills is paid around what is normal the leaders of comparable size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling REGENXBIO (free visualization of insider trades).
Important note: REGENXBIO may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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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. Thank you for reading.
