Briggs Morrison became the CEO of Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Briggs Morrison's Compensation Compare With Similar Sized Companies?
Our data indicates that Syndax Pharmaceuticals, Inc. is worth US$237m, and total annual CEO compensation is US$2.1m. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$566k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.2m.
It would therefore appear that Syndax Pharmaceuticals, Inc. pays Briggs Morrison more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Syndax Pharmaceuticals has changed over time.
Is Syndax Pharmaceuticals, Inc. Growing?
Syndax Pharmaceuticals, Inc. has increased its earnings per share (EPS) by an average of 49% a year, over the last three years (using a line of best fit). Its revenue is down -33% over last year.
This demonstrates that the company has been improving recently. A good result. 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 Syndax Pharmaceuticals, Inc. Been A Good Investment?
With a three year total loss of 38%, Syndax Pharmaceuticals, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared the total CEO remuneration paid by Syndax Pharmaceuticals, 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.
However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. So you may want to check if insiders are buying Syndax Pharmaceuticals shares with their own money (free access).
Important note: Syndax Pharmaceuticals 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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