M. Berrey became the CEO of Chimerix, Inc. (NASDAQ:CMRX) in 2014. 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 process should give us an idea about how appropriately the CEO is paid.
How Does M. Berrey’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Chimerix, Inc. has a market cap of US$171m, and is paying total annual CEO compensation of US$2.1m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$542k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO compensation was US$955k.
As you can see, M. Berrey is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Chimerix, Inc. is paying too much. 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 Chimerix has changed over time.
Is Chimerix, Inc. Growing?
Chimerix, Inc. has increased its earnings per share (EPS) by an average of 23% a year, over the last three years In the last year, its revenue is down -9.4%.
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 Chimerix, Inc. Been A Good Investment?
Since shareholders would have lost about 90% over three years, some Chimerix, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We examined the amount Chimerix, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. So you may want to check if insiders are buying Chimerix shares with their own money (free access).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.