Rob Bazemore has been the CEO of Epizyme, Inc. (NASDAQ:EPZM) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Rob Bazemore’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Epizyme, Inc. has a market cap of US$954m, and is paying total annual CEO compensation of US$3.6m. (This number is for the twelve months until December 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$556k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO compensation was US$2.2m.
Thus we can conclude that Rob Bazemore receives more in total compensation than the median of a group of companies in the same market, and of similar size to Epizyme, Inc.. However, this doesn’t necessarily mean the pay is too high. 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, below, how CEO compensation at Epizyme has changed over time.
Is Epizyme, Inc. Growing?
Epizyme, Inc. has increased its earnings per share (EPS) by an average of 8.7% a year, over the last three years (using a line of best fit). It achieved revenue growth of 117% over the last year.
I like the look of the strong year-on-year improvement in revenue. 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. You might want to check this free visual report on analyst forecasts for future earnings.
Has Epizyme, Inc. Been A Good Investment?
Epizyme, Inc. has served shareholders reasonably well, with a total return of 17% over three years. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared total CEO remuneration at Epizyme, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Over the last three years returns to investors have been uninspiring, and we would have liked to see stronger business growth. Considering this, we wouldn’t want to see any big pay rises, although we’d stop short of calling the CEO compensation unfair. Whatever your view on compensation, you might want to check if insiders are buying or selling Epizyme shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.