In 2011 Mark Baker was appointed CEO of Progenics Pharmaceuticals, Inc. (NASDAQ:PGNX). 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. 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 Baker’s Compensation Compare With Similar Sized Companies?
According to our data, Progenics Pharmaceuticals, Inc. has a market capitalization of US$386m, and pays its CEO total annual compensation worth US$2.3m. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at US$614k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.6m.
As you can see, Mark Baker is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Progenics Pharmaceuticals, Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Progenics Pharmaceuticals, below.
Is Progenics Pharmaceuticals, Inc. Growing?
Over the last three years Progenics Pharmaceuticals, Inc. has shrunk its earnings per share by an average of 19% per year. In the last year, its revenue is up 31%.
The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. It’s hard to reach a conclusion about business performance right now. This may be one to watch.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Progenics Pharmaceuticals, Inc. Been A Good Investment?
Given the total loss of 23% over three years, many shareholders in Progenics Pharmaceuticals, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We examined the amount Progenics Pharmaceuticals, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Shareholders may wish to consider further research. Although we don’t think the CEO pay is too high, it is probably more on the generous side of things. Shareholders may want to check for free if Progenics Pharmaceuticals insiders are buying or selling shares.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings 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.