Yahoo Finance Is Intrexon Corporation (NASDAQ:XON) Excessively Paying Its CEO?
In 2009 RJ Kirk was appointed CEO of Intrexon Corporation (NASDAQ:XON). 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.
View our latest analysis for Intrexon
How Does RJ Kirk's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Intrexon Corporation has a market cap of US$892m, and reported total annual CEO compensation of US$2.1m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at . We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.6m.
That means RJ Kirk receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Intrexon has changed from year to year.
Is Intrexon Corporation Growing?
Over the last three years Intrexon Corporation has shrunk its earnings per share by an average of 45% per year (measured with a line of best fit). Its revenue is down 35% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Intrexon Corporation Been A Good Investment?
Since shareholders would have lost about 79% over three years, some Intrexon Corporation shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Remuneration for RJ Kirk is close enough to the median pay for a CEO of a similar sized company .
Returns have been disappointing and the company is not growing its earnings per share. Few would argue that it's wise for the company to pay any more, before returns improve. Shareholders may want to check for free if Intrexon insiders are buying or selling shares.
If you want to buy a stock that is better than Intrexon, this free list of high return, low debt companies is a great place to look.
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.
