Sandy Macrae has been the CEO of Sangamo Therapeutics, Inc. (NASDAQ:SGMO) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Sandy Macrae's Compensation Compare With Similar Sized Companies?
Our data indicates that Sangamo Therapeutics, Inc. is worth US$1.3b, and total annual CEO compensation is US$4.1m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$636k. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.1m.
So Sandy Macrae is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Sangamo Therapeutics has changed over time.
Is Sangamo Therapeutics, Inc. Growing?
On average over the last three years, Sangamo Therapeutics, Inc. has grown earnings per share (EPS) by 8.1% each year (using a line of best fit). In the last year, its revenue is up 29%.
It's hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. I wouldn't say this is necessarily top notch growth, but it is certainly promising. It could be important to check this free visual depiction of what analysts expect for the future.
Has Sangamo Therapeutics, Inc. Been A Good Investment?
I think that the total shareholder return of 159%, over three years, would leave most Sangamo Therapeutics, Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Sandy Macrae is paid around what is normal the leaders of comparable size companies.
While the growth could be better, the shareholder returns are clearly good. So we can conclude that on this analysis the CEO compensation seems pretty sound. Shareholders may want to check for free if Sangamo Therapeutics insiders are buying or selling shares.
If you want to buy a stock that is better than Sangamo Therapeutics, this free list of high return, low debt companies is a great place to look.
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.