Mark Capone has been the CEO of Myriad Genetics, Inc. (NASDAQ:MYGN) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. 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 Mark Capone's Compensation Compare With Similar Sized Companies?
Our data indicates that Myriad Genetics, Inc. is worth US$2.2b, and total annual CEO compensation was reported as US$8.9m for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at US$887k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.9m.
As you can see, Mark Capone is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Myriad Genetics, 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 a visual representation of the CEO compensation at Myriad Genetics, below.
Is Myriad Genetics, Inc. Growing?
Over the last three years Myriad Genetics, Inc. has shrunk its earnings per share by an average of 37% per year (measured with a line of best fit). Its revenue is up 8.9% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. 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 Myriad Genetics, Inc. Been A Good Investment?
I think that the total shareholder return of 81%, over three years, would leave most Myriad Genetics, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We examined the amount Myriad Genetics, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Neither earnings per share nor revenue have been growing sufficiently to impress us, over the last three years. On the other hand, returns have been good, so the company is doing something right. Given this situation we doubt shareholders are particularly concerned about the CEO compensation. Shareholders may want to check for free if Myriad Genetics 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.
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