Kevin Conroy became the CEO of Exact Sciences Corporation (NASDAQ:EXAS) in 2009. First, this article will compare CEO compensation with compensation at other large companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Kevin Conroy's Compensation Compare With Similar Sized Companies?
Our data indicates that Exact Sciences Corporation is worth US$12b, and total annual CEO compensation was reported as US$7.0m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$696k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Exact Sciences has changed over time.
Is Exact Sciences Corporation Growing?
Exact Sciences Corporation has increased its earnings per share (EPS) by an average of 3.7% a year, over the last three years (using a line of best fit). It achieved revenue growth of 76% over the last year.
It's hard to interpret the strong revenue growth as anything other than a positive. With that in mind, the modestly improving EPS seems positive. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. It could be important to check this free visual depiction of what analysts expect for the future.
Has Exact Sciences Corporation Been A Good Investment?
I think that the total shareholder return of 388%, over three years, would leave most Exact Sciences Corporation shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
It appears that Exact Sciences Corporation remunerates its CEO below most large companies.
Kevin Conroy receives relatively low remuneration compared to other large companies. And the returns to shareholders were great, over the last few years. Although we could see higher growth, we'd argue the remuneration is modest, based on these observations. Shareholders may want to check for free if Exact Sciences insiders are buying or selling shares.
If you want to buy a stock that is better than Exact Sciences, this free list of high return, low debt companies is a great place to look.
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