Yahoo Finance Is MaxCyte, Inc.'s (LON:MXCT) CEO Pay Fair?
In 1999 Doug Doerfler was appointed CEO of MaxCyte, Inc. (LON:MXCT). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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 MaxCyte
How Does Doug Doerfler's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that MaxCyte, Inc. has a market cap of UK£62m, and reported total annual CEO compensation of US$644k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$435k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$320k.
As you can see, Doug Doerfler is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean MaxCyte, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at MaxCyte has changed over time.
Is MaxCyte, Inc. Growing?
On average over the last three years, MaxCyte, Inc. has shrunk earnings per share by 9.7% each year (measured with a line of best fit). In the last year, its revenue is up 23%.
Unfortunately, earnings per share have trended lower over the last three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has MaxCyte, Inc. Been A Good Investment?
With a three year total loss of 15%, MaxCyte, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared total CEO remuneration at MaxCyte, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
We think many shareholders would be underwhelmed with the business growth over the last three years. Over the same period, investors would have come away with nothing in the way of share price gains. This analysis suggests to us that the CEO is paid too generously! Shareholders may want to check for free if MaxCyte insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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.
