Todd Pope became the CEO of TransEnterix, Inc. (NYSEMKT:TRXC) in 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Todd Pope's Compensation Compare With Similar Sized Companies?
Our data indicates that TransEnterix, Inc. is worth US$449m, and total annual CEO compensation is US$3.6m. (This is based on the year to December 2018). We note that's an increase of 31% above last year. While we always look at total compensation first, we note that the salary component is less, at US$481k. 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, Todd Pope is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean TransEnterix, 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 a visual representation of the CEO compensation at TransEnterix, below.
Is TransEnterix, Inc. Growing?
TransEnterix, Inc. has increased its earnings per share (EPS) by an average of 12% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 239%.
This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Shareholders might be interested in this free visualization of analyst forecasts.
Has TransEnterix, Inc. Been A Good Investment?
With a total shareholder return of 6.7% over three years, TransEnterix, Inc. has done okay by shareholders. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
We examined the amount TransEnterix, 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.
However, the earnings per share growth over three years is certainly impressive. Looking at the same time period, we think that the shareholder returns are respectable. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at TransEnterix.
Important note: TransEnterix may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.