Yahoo Finance Should You Worry About REGENXBIO Inc.'s (NASDAQ:RGNX) CEO Pay Cheque?
Ken Mills became the CEO of REGENXBIO Inc. (NASDAQ:RGNX) in 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View 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$1.0b, and paid its CEO total annual compensation worth US$4.9m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$546k. We further remind readers that the CEO may face performance requirements to receive the non-salary part 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$3.1m.
Thus we can conclude that Ken Mills receives more in total compensation than the median of a group of companies in the same market, and of similar size to REGENXBIO Inc.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at REGENXBIO has changed over time.
Is REGENXBIO Inc. Growing?
REGENXBIO Inc. has increased its earnings per share (EPS) by an average of 25% a year, over the last three years (using a line of best fit). Its revenue is down 84% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. 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?
REGENXBIO Inc. has generated a total shareholder return of 23% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
We examined the amount REGENXBIO Inc. pays its CEO, and compared it to the amount paid by 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. Looking at the same time period, we think that the shareholder returns are respectable. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. On another note, we've spotted 3 warning signs for REGENXBIO 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.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
