Yahoo Finance What We Learned About MaxCyte's (LON:MXCT) CEO Compensation
Doug Doerfler became the CEO of MaxCyte, Inc. (LON:MXCT) in 1999, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether MaxCyte pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for MaxCyte
How Does Total Compensation For Doug Doerfler Compare With Other Companies In The Industry?
Our data indicates that MaxCyte, Inc. has a market capitalization of UK£346m, and total annual CEO compensation was reported as US$705k for the year to December 2019. Notably, that's an increase of 9.4% over the year before. In particular, the salary of US$448.8k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the same industry with market capitalizations ranging between UK£152m and UK£606m had a median total CEO compensation of US$433k. Hence, we can conclude that Doug Doerfler is remunerated higher than the industry median. Furthermore, Doug Doerfler directly owns UK£1.9m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$449k | US$435k | 64% |
Other | US$257k | US$209k | 36% |
Total Compensation | US$705k | US$644k | 100% |
On an industry level, around 66% of total compensation represents salary and 34% is other remuneration. Although there is a difference in how total compensation is set, MaxCyte more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
MaxCyte, Inc.'s Growth
Over the last three years, MaxCyte, Inc. has shrunk its earnings per share by 6.0% per year. It achieved revenue growth of 33% over the last year.
The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has MaxCyte, Inc. Been A Good Investment?
Boasting a total shareholder return of 89% over three years, MaxCyte, Inc. has done well by shareholders. 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...
As we touched on above, MaxCyte, Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But shareholder returns and revenue growth have been very healthy as we saw before. The only sore spot is EPS growth, which is negative over the same period. Considering all the factors, we would have to say CEO pay is fair; however, moving forward, it would be nice to see EPS growth from the company as well.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for MaxCyte that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. 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.
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