Stan Erck has been the CEO of Novavax Inc (NASDAQ:NVAX) since 2011. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Stan Erck’s Compensation Compare With Similar Sized Companies?
According to our data, Novavax Inc has a market capitalization of US$685m, and pays its CEO total annual compensation worth US$3m. That’s below the compensation, last year. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO compensation was US$2m.
So Stan Erck is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Novavax has changed from year to year.
Is Novavax Inc Growing?
Over the last three years Novavax Inc has grown its earnings per share (EPS) by an average of 7.5% per year. In the last year, its revenue is up 47%.
I like the look of the strong year-on-year improvement in revenue. With that in mind, the modestly improving EPS seems positive. So while I’d stop short of saying growth is absolutely outstanding, there are definitely some clear positives!
You might want to check this free visual report on analyst forecasts for future earnings.
Has Novavax Inc Been A Good Investment?
Given the total loss of 74% over three years, many shareholders in Novavax Inc are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Stan Erck is paid around what is normal the leaders of comparable size companies.
We would like to see somewhat stronger per share growth. And we think the shareholder returns – over three years – have been underwhelming. So suffice it to say we don’t think the compensation is modest! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Novavax Inc (free visualization of insider trades).
Or you might rather take a peek at this analytical visualization of historic cash flow, 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.