Dan Browne became the CEO of Revance Therapeutics, Inc. (NASDAQ:RVNC) in 2002. 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 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 Dan Browne's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Revance Therapeutics, Inc. has a market cap of US$487m, and is paying total annual CEO compensation of US$4.7m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$565k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.9m.
Thus we can conclude that Dan Browne receives more in total compensation than the median of a group of companies in the same market, and of similar size to Revance Therapeutics, Inc.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Revance Therapeutics, below.
Is Revance Therapeutics, Inc. Growing?
On average over the last three years, Revance Therapeutics, Inc. has shrunk earnings per share by 7.7% each year (measured with a line of best fit). Its revenue is up 215% over last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has Revance Therapeutics, Inc. Been A Good Investment?
Since shareholders would have lost about 21% over three years, some Revance Therapeutics, Inc. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Revance Therapeutics, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. Whatever your view on compensation, you might want to check if insiders are buying or selling Revance Therapeutics shares (free trial).
Important note: Revance Therapeutics 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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