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What Can We Conclude About ImmunoGen's (NASDAQ:IMGN) CEO Pay?

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·3 min read
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This article will reflect on the compensation paid to Mark Enyedy who has served as CEO of ImmunoGen, Inc. (NASDAQ:IMGN) since 2016. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for ImmunoGen

How Does Total Compensation For Mark Enyedy Compare With Other Companies In The Industry?

At the time of writing, our data shows that ImmunoGen, Inc. has a market capitalization of US$675m, and reported total annual CEO compensation of US$3.9m for the year to December 2019. That's a notable decrease of 56% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$710k.

In comparison with other companies in the industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$2.6m. Hence, we can conclude that Mark Enyedy is remunerated higher than the industry median. Moreover, Mark Enyedy also holds US$1.7m worth of ImmunoGen stock directly under their own name.

Component

2019

2018

Proportion (2019)

Salary

US$710k

US$687k

18%

Other

US$3.2m

US$8.1m

82%

Total Compensation

US$3.9m

US$8.8m

100%

On an industry level, roughly 23% of total compensation represents salary and 77% is other remuneration. ImmunoGen pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

ImmunoGen, Inc.'s Growth

Over the past three years, ImmunoGen, Inc. has seen its earnings per share (EPS) grow by 21% per year. In the last year, its revenue is up 78%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has ImmunoGen, Inc. Been A Good Investment?

Given the total shareholder loss of 43% over three years, many shareholders in ImmunoGen, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we noted earlier, ImmunoGen pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, we must not forget that the EPS growth has been very strong, but it's disappointing to see negative shareholder returns over the same period. Although we'd stop short of calling it inappropriate, we think Mark is earning a very handsome sum.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for ImmunoGen that you should be aware of before investing.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.