Ming Hsieh has been the CEO of Fulgent Genetics, Inc. (NASDAQ:FLGT) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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 Ming Hsieh's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Fulgent Genetics, Inc. has a market cap of US$205m, and reported total annual CEO compensation of US$240k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$240k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.2m.
Most shareholders would consider it a positive that Ming Hsieh takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Fulgent Genetics has changed from year to year.
Is Fulgent Genetics, Inc. Growing?
Fulgent Genetics, Inc. has increased its earnings per share (EPS) by an average of 58% a year, over the last three years (using a line of best fit). It achieved revenue growth of 33% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. It could be important to check this free visual depiction of what analysts expect for the future.
Has Fulgent Genetics, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Fulgent Genetics, Inc. for providing a total return of 36% over three years. 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 looks like Fulgent Genetics, Inc. pays its CEO less than similar sized companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Ming Hsieh deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. It would be even more positive if company insiders are buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Fulgent Genetics.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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