Tony Hunt has been the CEO of Repligen Corporation (NASDAQ:RGEN) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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 Tony Hunt's Compensation Compare With Similar Sized Companies?
Our data indicates that Repligen Corporation is worth US$4.0b, and total annual CEO compensation was reported as US$14m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$600k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.1m.
Thus we can conclude that Tony Hunt receives more in total compensation than the median of a group of companies in the same market, and of similar size to Repligen Corporation. 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 a visual representation of the CEO compensation at Repligen, below.
Is Repligen Corporation Growing?
Repligen Corporation has increased its earnings per share (EPS) by an average of 19% a year, over the last three years (using a line of best fit). Its revenue is up 36% over last year.
This demonstrates that the company has been improving recently. A good result. 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 Repligen Corporation Been A Good Investment?
Boasting a total shareholder return of 174% over three years, Repligen Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared total CEO remuneration at Repligen Corporation with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Repligen.
If you want to buy a stock that is better than Repligen, this free list of high return, low debt companies is a great place to look.
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